In reality, the monetization of generative AI poses a significant challenge for Meta.
Zuckerberg asserts that it will take Meta a significant amount of time to generate profits from its generative AI initiatives.
During the earnings report for the first quarter, Meta CEO Mark Zuckerberg conveyed to investors that while the company has deployed its ChatGPT competitor across Instagram, Facebook, and WhatsApp, the monetization of generative AI is not anticipated in the immediate future.
Meta has already achieved substantial profitability, with net income surpassing $12 billion on a revenue of $36.5 billion in the last quarter alone. However, the company foresees a slowdown in revenue growth while simultaneously increasing investments in AI and the metaverse.
Zuckerberg drew parallels to the rollout of features like Stories and Reels, asserting that historically, investing in the development of scaled experiences within their apps has proven to be a fruitful long-term endeavor for both Meta and its investors. He acknowledged the positive initial response to the Meta AI assistant, which has been tested by tens of millions of users since its recent widespread availability. However, the true measure of success lies in whether Meta AI becomes a frequently used product and garners significant interest among social media app users.
Looking ahead, Meta envisions several avenues for monetizing its assistant, which is currently free to use. This includes scaling business messaging, incorporating ads or paid content into AI interactions, and offering paid access to larger AI models and increased computing power. Furthermore, AI has already contributed to enhancing app engagement, leading to increased ad visibility and improved ad delivery to provide enhanced value.
In the near future, Zuckerberg suggested that the usage of Meta AI could enhance the quality of its advertisements, implying that the company will analyze user behavior on the assistant to gain better insights into their purchasing interests. This approach distinguishes Meta from OpenAI, which, thus far, has prioritized subscriptions and an emerging enterprise focus over an advertising-based business model.
Beyond Meta's generative AI endeavors, Zuckerberg expressed enthusiasm for the company's AI-powered smart glasses developed in collaboration with Ray-Ban. He noted that the glasses are sold out in various styles and colors and highlighted the recently expanded availability of its multimodal AI capabilities.
"While I previously believed that AR glasses would only become mainstream once we achieved full holographic displays, it now appears evident that there is also a significant market for fashionable AI glasses without a display," he stated.
