The gold rush for generative AI has begun, but don’t expect overnight profits. Meta CEO Mark Zuckerberg tempered investor expectations during Wednesday’s first-quarter earnings call, emphasizing that harnessing the technology’s financial potential will be a long-term endeavor.
Meta’s financial performance remains robust, with a net income of over $12 billion on $36.5 billion in revenue in the last quarter. However, revenue growth is projected to slow, while investments in AI and the metaverse continue to surge.
However, revenue growth is projected to slow, while investments in AI and the metaverse continue to surge.
Zuckerberg drew parallels with the successful rollouts of Stories and Reels, stating, “Investing in new scaled experiences has been a wise long-term investment for us and our investors. The initial signs for AI are promising, but building a leading AI will be a more extensive undertaking, likely taking several years.”
Since its widespread release last week, the Meta AI assistant has been tried by tens of millions of users, largely due to its prominent placement in areas like Instagram’s search box. The true test lies in whether users will return to the AI assistant frequently and if it becomes a sought-after feature in social media apps.
Looking ahead, Meta envisions multiple revenue streams for its assistant, including business messaging, ads or paid content within AI interactions, and paid access to more advanced AI models and computing power. Additionally, AI is already enhancing app engagement, naturally leading to increased ad exposure and improved ad delivery.
Unlike OpenAI, which has opted for subscriptions and enterprise focus, Meta plans to leverage user behavior analysis to refine its ads, potentially leading to more targeted and effective advertising.
Beyond generative AI, Zuckerberg expressed optimism about Meta’s smart glasses with Ray-Ban, which are sold out in many styles and colors. He highlighted the device’s multimodal AI capabilities, now more widely available.
Zuckerberg noted, “I once thought AR glasses wouldn’t be mainstream until we had full holographic displays. But it’s clear there’s a market for fashionable AI glasses without a display.”
