Shares of Meta Platforms (META) surged on Thursday, surpassing the 500 mark once again. The parent company of Facebook showcased its strides in leveraging generative artificial intelligence to amplify user engagement.
Strategic Unveiling at Industry Conference
During a Morgan Stanley industry conference, Facebook head Tom Alison unveiled the company’s strategy. They plan to deploy robust generative AI models for video recommendations across Facebook’s ecosystem.
Positive Outcomes of AI Implementation
Alison elaborated on the positive outcomes of Meta’s recent adoption of large language models. Their aim is to refine algorithms for suggesting Reels videos to users, leading to a notable 8%-10% increase in watch time for Reels on Facebook.
Expanding AI Integration and Expected Outcomes
Implemented late last year, this new model architecture proved significantly more efficient in data learning. Meta intends to scale up this model across its platform by 2026, targeting more engaging and relevant recommendations with enhanced responsiveness.
Meta stock rises
On the stock market, Meta stock rises 3.3% to close at 512.30, following a 1.2% gain on Wednesday. Over the past year, Meta’s shares surged by nearly 180%, bolstered by its perceived strength in AI innovation.
Embracing Open-Source AI
Meta’s commitment to an open-source AI approach is gaining traction. By offering their large language model Llama for free to developers and researchers, Meta aims to foster innovation in the AI community.
Zuckerberg’s Vision for AI and Revenue Generation
Meta CEO Mark Zuckerberg underscores the potential of AI investments in enhancing user engagement. This, in turn, could drive revenue growth through increased advertising opportunities across Meta’s platforms.
Catering to Gen Z Preferences
Furthermore, Alison emphasized Meta’s AI advancements as a means to stay relevant to the preferences of Gen Z. This generation seeks social media platforms that facilitate connection with friends while also offering diverse content experiences.
In other news, the Wall Street Journal reported that e-commerce platform Temu allocated nearly $2 billion to advertising through Meta last year. This underscores the significant investment by Chinese retailers in leveraging Facebook and Instagram ads to reach U.S. consumers.
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