The Dominance of Artificial Intelligence in Meta’s Earnings Call

After Meta Platforms provided weak revenue guidance and announced plans to increase spending, Chief Executive Officer Mark Zuckerberg joined company executives on an earnings call that focused on artificial intelligence (AI).

AI Investment Drives Increased Expenditure Guidance

Zuckerberg highlighted Meta’s compelling investment opportunities in AI to improve its core business in the near term and generative AI and the company’s virtual reality lab in the longer term. The company expects to invest significantly more in infrastructure over the coming years while maintaining a focus on operating discipline.

The CEO emphasized the importance of investing in AI to stay at the leading edge of technology. Meta raised its capital expenditures guidance for 2024 due to infrastructure investments to support its AI roadmap.

Half of Content Instagram Users See Is AI-Recommended

Zuckerberg provided an update on how Meta uses AI technology in its ranking and recommendation engines for platforms like Facebook and Instagram. He mentioned that over 50% of the content users see on Instagram is now AI-recommended, which enhances engagement and provides value to advertisers.

Meta’s Chief Financial Officer Susan Lee noted that advertisers benefit from the company’s AI tech through the recommendation engine and GenAI features offered in its Ad Manager. Meta is also testing AI agents for businesses to communicate with customers on Messenger and WhatsApp.

Initial MetaAI Feedback Is ‘Very Positive’ A Week After Launch

Zuckerberg shared positive feedback about MetaAI, the company’s new AI assistant powered by Llama 3. The assistant is integrated into Facebook, Instagram, and WhatsApp, aiming to compete with other AI models in the market.

The initial rollout of MetaAI has been successful, with tens of millions of users trying it out. Zuckerberg believes that MetaAI with Llama 3 is now the most intelligent AI assistant available for free use.

Meta Supports ‘Open’ Ecosystem For AI and Virtual Reality

Zuckerberg highlighted Meta’s support for an open ecosystem in AI and virtual reality systems. The company aims to promote safety, transparency, and cost efficiency through collaboration with the open-source community.

Meta’s push for openness in AI and virtual reality could help the company gain influence and compete with leading makers of closed AI models. Zuckerberg believes that an open ecosystem approach will expand the virtual and mixed reality headset market over time.

Overall, Meta’s focus on artificial intelligence in its recent earnings call demonstrates the company’s commitment to innovation and technological advancement. By investing in AI, Meta aims to enhance user experience, drive engagement, and create value for advertisers while positioning itself as a leader in the tech industry.

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