"Meta Platforms ( META) will soon target advertisements and other content recommendations to users based on their conversations with its generative-AI-powered chatbot. Meta stock slipped Wednesday. The plan will go into effect Dec. 16. The move comes as Chief Executive Mark Zuckerberg has pledged to spend hundreds of billions to build AI-related infrastructure, such as data centers. The spending is to support the company's Meta AI chatbot and other products Zuckerberg hopes to someday infuse with the power of "superintelligence.""
"Meta's plan to target ads from its chatbot is unlikely to register as a surprise on Wall Street. Advertising already provides nearly all of Meta's revenue, which analysts polled by FactSet forecast will reach $196.7 billion this year. Zuckerberg has previously told analysts he expects the company can get a return on its AI investments through improved advertising, both in how ads are sent to users and the tools the company can offer businesses."
"But advertising based on chatbot conversations could prove tricky, given that some users use chatbots for personal questions. Meta said in its blog post that it won't use conversation on topics such as religious or political views, sexual orientation, health, and racial or ethnic origin to customize ads. The company is also not including users in the United Kingdom, South Korea and the European Union for the initial launch."
Meta will target ads and content recommendations based on users' conversations with its Meta AI chatbot starting Dec. 16. Meta is spending hundreds of billions to build AI infrastructure supporting Meta AI. The chatbot has over 1 billion monthly users across Facebook, Instagram, WhatsApp and Messenger. Advertising provides nearly all of Meta's revenue, forecast at $196.7 billion this year, and Meta expects AI investments to improve ad delivery and tools. Meta will not use conversations about religion, politics, sexual orientation, health, or race to customize ads, and users in the UK, South Korea and the EU are excluded from the rollout.
Read at Investor's Business Daily
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