Competition in the field of artificial intelligence is becoming increasingly fierce. As the two giants, Google and Meta have attracted much attention for their future development direction and layout in the field of AI. This article explores IMD Business School professor Howard Yu’s analysis of the future development prospects of Google and Meta. He believes that Meta will win out in the AI revolution with its flexible advertising system and AI strategy, while Google faces business model challenges.
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 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.
Highlight:
Meta is considered to have greater potential in the AI revolution and may surpass Google.
Meta's advertising system has been enhanced by AI technology and is more flexible in adapting to market changes.
Google encounters challenges in integrating AI with its existing business, and its business model is threatened.
All in all, the professor’s analysis pointed out that Meta’s strategic layout in the field of AI is more successful. The flexibility and innovation of its advertising business enable it to better adapt to changes in the AI era, while Google needs to integrate AI with existing businesses. make more efforts. In the future development of the AI field, Meta may occupy a more important position.