AI Set to Redefine the Advertising Industry: Meta CEO Mark Zuckerberg

Meta Chief Executive Officer Mark Zuckerberg has stated that artificial intelligence (AI) is poised to bring transformative changes to the advertising sector. In a recent interview with Stratechery, he explained that AI could eventually handle the entire advertising process—from creative development to identifying target consumers.

“Soon, businesses will only need to share their objectives and link their bank accounts. They won’t have to worry about creatives, targeted demographics, or analyzing results. They can simply review the outcomes we deliver. I believe this will fundamentally redefine the advertising industry,” said Mark Zuckerberg.

According to Zuckerberg, in the near future, AI will generate images, videos, and promotional slogans related to client products. These advertisements will then be shown to selected users via AI. AI will also analyze ad performance, identify successful ads, amplify their reach, and encourage users to make purchases directly through Meta’s platforms.

Zuckerberg noted that Meta is already making significant investments in AI-based products to gain an edge in the advertising market. He revealed that during the last quarter, Meta implemented a new recommendation model for Reels, resulting in a 5% increase in conversion rates. Additionally, more than 30% of Meta’s users are utilizing AI tools to develop ad creatives.

He also mentioned that improvements in Meta’s recommendation systems over the past six months have led to a 7% increase in user time on Facebook and a 6% increase on Instagram.

Beyond advertising, Zuckerberg indicated that Meta AI could soon feature its own ads. He also hinted at the introduction of a subscription-based “paid tier” service. While Meta AI is currently available free of charge, he opined that the paid tier would offer users enhanced computing power and faster response times.