Competition in the field of artificial intelligence is becoming increasingly fierce, and giants are trying to dominate the future AI market. The editor of Downcodes will explain to you Professor Howard Yu of IMD Business School’s unique insights into the development prospects of Google and Meta in the field of AI. The professor believes that although Google started early in AI research, Meta is more likely to become the biggest winner of this AI revolution with its unique business model and strategic layout. This involves differences in business models, the application of AI technology, and the judgment of future development trends.
In recent years, artificial intelligence (AI) technology has developed rapidly, changing the face of various industries. However, despite Google's pioneering work in artificial intelligence research, one business school professor believes that Meta (formerly Facebook) will stand out as the biggest beneficiary of this change.
Professor Howard Yu of IMD Business School pointed out that Google's core business model, which relies on simple searches and link clicks, is actually being undermined by artificial intelligence. Meta’s advertising ecosystem, on the other hand, has been given a new lease of life by the power of artificial intelligence. For example, after Apple introduced app tracking transparency, Meta’s AI-driven advertising system was able to flexibly adapt to this change. This feature requires iOS apps to obtain user permission before tracking user activity, which makes it impossible for advertisers to track user behavior as before. However, the probabilistic model used by Meta performs better than previous tracking systems.
Professor Yu further pointed out that Meta is blurring the boundaries between content and advertising, using artificial intelligence technology to make products in pictures and videos on social media purchasable. Not only did this move increase ad inventory creation, it turned every possible piece of content into a potential sales opportunity. In addition, Meta's cooperation with EssilorLuxottica to launch Ray-Ban Meta smart glasses gives it a unique advantage in the field of AI, and this move does not threaten its existing business model.
Relatively speaking, Google faces challenges in integrating artificial intelligence into its products. Professor Yu pointed out that Google’s search business relies on simple and clear link clicks, and AI chatbots can directly answer user questions, so that users no longer need to visit ads-filled websites. At the same time, some of the AI features launched by Google, such as NotebookLM, have failed to significantly enhance its main revenue source.
According to the Future Readiness Center's Future Readiness Indicator, Meta ranks third among technology companies, behind Nvidia and Microsoft, which shows that Meta's aggressive investment in the field of AI has given it strong growth momentum. Google parent company Alphabet ranked fourth.
All in all, Professor Howard Yu's analysis provides us with a new perspective on the AI strategic layout of technology giants. Meta’s success is no accident. Its flexible application of AI technology and innovation in business models are worthy of our in-depth thinking. In the future, AI technology will continue to profoundly change our lives, and whoever can better adapt to and utilize this technology will have an advantage in future competition. The editor of Downcodes will continue to pay attention to the trends in the AI field and bring you more exciting reports.