During Meta's first-quarter earnings call, CEO Mark Zuckerberg emphasized to investors the company's focus on turning generative AI into a profitable venture. Following the integration of its ChatGPT competitor into various platforms like Instagram, Facebook, and WhatsApp, much of the discussion centered around the potential revenue generation from AI.
Although Meta has been profitable, with net income exceeding $12 billion on $36.5 billion in revenue in the last quarter alone, its revenue growth is expected to slow. Simultaneously, the company is increasing its investment in AI and the metaverse.
Zuckerberg highlighted the importance of building leading AI, likening it to the successful rollouts of Stories and Reels. He acknowledged that developing top-notch AI would be a more significant endeavor than previous app enhancements, requiring several years.
The Meta AI assistant has been "tried" by "tens of millions of people" since its recent widespread availability, particularly in areas like the Instagram search box. However, the true test will be whether it becomes a regularly used product and if there is significant demand for an AI assistant in social media apps.
Looking ahead, Meta sees multiple monetization opportunities for its assistant, which is currently free to use. Zuckerberg outlined potential revenue streams, including scaling business messaging, introducing ads or paid content into AI interactions, and offering paid access to larger AI models and more computing power. Additionally, AI is already enhancing app engagement, leading to increased ad views and improved ad relevance.
In the coming year, Meta anticipates that the usage of its AI could enhance the quality of its ads. This approach contrasts with OpenAI, which has focused on subscriptions and enterprise services rather than advertising.
Beyond AI, Zuckerberg expressed optimism about Meta's smart glasses with Ray-Ban, noting that they are sold out in many styles and colors. He highlighted the device's multimodal AI, which recently became more widely available.
"I used to think that AR glasses wouldn’t really be a mainstream product until we had full holographic displays," he said. "But now it seems pretty clear that there’s also a meaningful market for fashionable AI glasses without a display."
