In recent years, artificial intelligence (AI) technology has rapidly developed, transforming various industries. However, despite Google's pioneering role in AI research, a business school professor believes that Meta (formerly Facebook) will stand out in this transformation and become the biggest beneficiary.
Professor Howard Yu from IMD Business School pointed out that Google's core business model, which relies on simple searches and link clicks, is actually being undermined by AI. In contrast, Meta's advertising ecosystem has gained new vitality driven by AI. For instance, after Apple launched its App Tracking Transparency feature, Meta's AI-driven advertising system was able to adapt flexibly to this change. This feature requires iOS apps to obtain user permission before tracking user activity, making it difficult for advertisers to track user behavior as they did before. However, the probabilistic models employed by Meta have performed better than previous tracking systems.
Professor Yu further noted that Meta is blurring the lines between content and advertising, using AI technology to make products in images and videos on social media shoppable. This initiative not only increases the creation of advertising inventory but also turns every possible piece of content into a potential sales opportunity. Additionally, Meta's collaboration with EssilorLuxottica to launch Ray-Ban Meta smart glasses gives it a unique advantage in the AI field, and this move does not threaten its existing business model.
In comparison, Google faces challenges in integrating AI into its products. Professor Yu pointed out that Google's search business relies on straightforward link clicks, while AI chatbots can directly answer user questions, reducing the need for users to visit ad-filled pages. Moreover, some AI features launched by Google, such as NotebookLM, have not significantly enhanced its main revenue sources.
According to the Future Preparedness Index from the Center for Future Preparedness, Meta ranks third among tech companies, following Nvidia and Microsoft, indicating that Meta's aggressive investments in AI have provided strong growth momentum. Google's parent company, Alphabet, ranks fourth.
Key Points:
🌟 Meta is seen as having greater potential in the AI transformation, possibly surpassing Google.
📈 Meta's advertising system has been enhanced by AI technology, making it more adaptable to market changes.
🤖 Google faces challenges in integrating AI with its existing business, threatening its business model.
