Meta strengthens AI to increase ad income

Meta, the tech giant, is ramping up its investment in artificial intelligence (AI) with the goal of enhancing its advertising revenue streams and delivering more relevant commercials to users' feeds.

Naomi Shepherd, the Group Industry Director of Meta Australia, stated that the company, which owns Facebook, is placing significant emphasis on finding ways to enhance the relevance of advertising for users on their platform.

During an interview with Sky News business editor Ross Greenwood, Naomi Shepherd affirmed that Meta has been investing in this aspect for several years. She explained that the focus on personalized advertising is the reason why her Facebook feed would appear distinct from someone else's.

Naomi Shepherd emphasized the company's commitment to enhancing the relevance of advertising for users on their platform, aiming to create a highly personalized ads ecosystem. She acknowledged that the rapid advancement of AI necessitated tech companies to stay abreast of developments; otherwise, they risked negative consequences, such as impairment to their advertising streams.

According to Naomi Shepherd, Meta's continuous investment in AI is driven by their observation of its ability to boost conversions for advertisers. They recognize the potential of AI in enhancing advertising effectiveness and thus allocate significant resources to its development.

Naomi Shepherd explained that Meta's AI algorithms enable users on their platform to see content based on their preferences and interests, including products they may be interested in purchasing. She highlighted that approximately 20 percent of the content displayed on users' feeds is determined by AI technology. The ability to deliver targeted advertising through AI is seen as a significant advantage for businesses.

Naomi Shepherd mentioned that Meta is actively encouraging advertisers to entrust them with greater control over their campaigns on their platforms. This implies that Meta is working to provide advertisers with more tools and options to effectively manage and optimize their advertising campaigns on the platform.

Naomi Shepherd explained that Meta's efforts extend to enabling advertisers to strategically position their specific messages and campaigns in front of their "most valuable customers." This indicates a focus on providing advertisers with tools and features that allow them to target their advertising efforts towards their target audience segments, maximizing the impact and relevance of their campaigns.

The potential risks that AI poses to the media industry are considered significant, as highlighted by News Corp's global chief, Robert Thomson. He has publicly addressed this concern on multiple occasions, including during the company's third-quarter results announcement held on Friday. It signifies the ongoing awareness within the media industry regarding the challenges and implications associated with the adoption and impact of AI technologies.

Robert Thomson further cautioned against the proliferation of "degenerative AI." He highlighted that tools like ChatGPT, while providing insights, are limited by the quality and relevance of their source material. He emphasized that such AI models tend to offer more retrospective rather than real-time and contemporary information. This serves as a reminder that AI outputs should be critically evaluated and not solely relied upon for up-to-date insights.

The AI chat services operate by allowing users to input questions or statements, and they generate answers by aggregating information from various sources. However, the precise origins of the information used are often undisclosed or unknown. While these services strive to provide helpful responses, it's important to recognize that the specific sources and reliability of the information may not be explicitly identified or guaranteed.

Mr. Thomson stated that News Corp, the publisher of The Australian, believes it should receive compensation when its journalism is incorporated into AI chatbot services. This perspective aligns with the notion that content creators and publishers should be appropriately recognized and remunerated for the usage of their journalistic works in AI-driven platforms.

According to Mr. Thomson, News Corp's content is inevitably used, and at times exploited, to train AI engines. He further highlighted that specific examples of their content may surface as responses to user queries through AI chatbot services. Additionally, he expressed concern about the aggregation, synthesis, and monetization of their content by other entities, emphasizing the expectation for News Corp to receive its fair share of such monetization.

In a recent incident reported by The Australian, it was revealed that Google's AI chatbot, Bard, initially supported the Indigenous voice to parliament as a positive step but later underwent changes due to accusations of political bias. The modified response from the chatbot informed users that it could not provide an opinion on the matter when asked about its stance on the voice to parliament.