Meta made a huge commitment to artificial intelligence (AI) in 2024, with CEO Mark Zuckerberg putting the company’s full resources behind AI.
In April, Meta announced it would invest up to $10 billion to support AI infrastructure, despite a 19% drop in stock value. However, by December, the company’s stock price hit a record high, rising nearly 70% for the year.
Zuckerberg believes AI is crucial for Meta’s future, especially in advertising and new projects like Ray-Ban smart glasses and the Orion AR headset.
Meta’s AI models, like the Llama AI, power features such as the Meta AI digital assistant, which Zuckerberg aims to make the world’s most-used AI assistant by the end of 2024.
Meta has already seen positive results from AI, especially in advertising. Over 1 million advertisers used Meta’s generative AI tools in December, leading to a 7% increase in conversions for businesses.
While Meta AI’s standalone app is less popular than competitors like ChatGPT, it’s integrated into apps like Facebook, Instagram, and WhatsApp, where it’s gaining traction, particularly in India.
Looking ahead to 2025, analysts are optimistic about Meta’s AI strategy. Jefferies analysts named Meta a “winner” in generative AI, predicting that its large user base could make it a major player in the AI space.
Meta is also exploring enterprise AI solutions, with the recent hiring of Clara Shih from Salesforce to lead this initiative.
