Meta’s AI Push May Outpace Google’s: Expert Highlights Transformative Shift
Howard Yu, a well-known expert on management and innovation, says Meta could beat Google in the race to develop AI, which would change how technology powers business models.
Yu, the LEGO Professor at IMD Business School and head of the Center for Future Readiness says that even though Google was one of the first companies to study AI, the technology it helped create is now changing the way it does business. At the same time, Meta’s aggressive AI approach is taking its advertising ecosystem to a whole new level.
AI Supercharges Meta’s Advertising Model
Meta’s AI-powered tools have changed the way digital advertising is done, and the company can quickly respond to changes in the market, such as Apple’s App Tracking Transparency (ATT) feature. Traditional ways of tracking how well ads are doing are thrown off by ATT’s rule that apps must ask users for permission to track them.
Later tracking systems weren’t as good as Meta’s probabilistic AI models, which let advertisers better guess how users would act without directly watching them. Yu says that Meta is “erasing the line between content and advertising” by letting people connect with and buy social media photos and videos. This means that all content is now advertising inventory.
The company’s work with EssilorLuxottica on the Ray-Ban Meta smart glasses is another example of how it can use AI without putting its main business at risk.
Google’s AI Dilemma
Google is still the biggest name in AI, but it can’t use the technology in as many goods as it would like because it depends on search-based ads for money. Google’s search engine likes things to be simple, so it only shows ads on web pages. However,t chatbots powered by AI that answer questions directly make users less likely to click on links, which hurts the business strategy.
Yu says that other innovations, like Google’s NotebookLM, have not yet made its main sources of income much stronger.
Meta’s Momentum in AI
Meta ranks third on the Future Readiness Indicator of the Center for Future Readiness, behind Nvidia and Microsoft. This is because it has made big investments in AI. The study also especially commends Meta for the correct use of AI in all its business processes, which has led to the rapid development of the technological sector. Google’s parent company, Alphabet, made it to the fourth on the list.
That is why Yu arrives at the conclusion that Meta could become the leader in the way AI transforms business models. This involves phenomena such as adaptive advertising and state-of-the-art collaborations. Google can continue being on top only in case it has some reflection on how AI is positioned in the environment which generates the loss.
Google struggles to do AI without transforming it into a brand-new service or product offering. Meta, on the other hand, uses AI in innovative solutions for advertising and communicating with customers. The options above revealed that the strategies that these tech giants select may alter how they wreak in the future as AI gets even better.
