In this instance, there are numerous enormous avenues for business development. The chief executive officer of Meta cautioned investors. However, it will be expensive and take time.
The excitement about generative AI is on, but it will be a while before turning a profit.
During the conference call that took place for the organization’s first-quarter financial announcement on Wednesday, Mark Zuckerberg, the chief executive officer of Meta, conveyed this message to investors. With its ChatGPT rival now widely available on Facebook, WhatsApp, and Instagram, a large portion of the conversation centred on how Meta plans to turn generative AI into a profitable venture.
With a net income of more than twelve billion dollars on $36.5 billion of dollars in earnings in the most recent quarter alone, the corporation is already very lucrative. However, in the future, the growth in its revenue is anticipated to decrease. It is also investing more than before in artificial intelligence and the metaverse.
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Zuckerberg compared the launch of Stories and Reels to the past and stated, “Traditionally, spending in developing these newly expanded features in our applications has proven an excellent investment over the long run for our team and for shareholders that remain with us.” Also, the early indicators are encouraging in this case. However, developing the top artificial intelligence will also need more work than the other features we’ve included in our apps, and it will probably take a while to complete.
Since it became generally accessible last week, the Meta artificial intelligence assistant has reportedly been “tried” by “tens of millions of people,” which is to be expected considering how frequently it is now included in places such as the search function for the Instagram box. The proper evaluation will be to see if Meta AI develops a product that users revisit and if a large number of users are interested in utilizing an artificial intelligence assistant in social networking applications.
Moving into the future, Meta sees a number of possibilities to make money off of its helper, who is currently available for free.
According to Zuckerberg, there are a number of strategies to create a huge business here, such as expanding corporate communications, incorporating advertisements or sponsored material within AI conversations, and charging users to access more computing and larger AI models. Furthermore, AI is already assisting us in increasing app engagement, which inevitably results in more people seeing advertisements and better advertisements that offer more excellent value.
Zuckerberg stated that using Meta AI might enhance the quality of the firm’s advertisements in the months or years to come. The business would examine how users interact with its assistants to gain more insight into their purchasing intentions. With this strategy, Meta departs from OpenAI, which has, up until now, rejected advertising in favour of subscriptions and an emerging enterprise focus.
Aside from Meta’s generative AI efforts, Zuckerberg expressed optimism over the company’s intelligent spectacles that integrate Ray-Ban technology. During the call, he announced that “several styles and colours were sold out and highlighted the multimodal AI of the gadget, which has lately been more accessible.
Until we had fully holographic displays, AR glasses wouldn’t be a widespread product, he added. However, it becomes rather evident that there is a sizable market for stylish AI eyeglasses with no displays as well.
