In recent discussions regarding the evolving landscape of artificial intelligence (AI) in business practices, notable developments have surfaced that hint at the direction in which major players like Meta and Apple are heading. These advancements, alongside trends in retail, highlight a shift in the engagement strategies of companies as they adapt to competitive pressures and technological innovations.
Connor Hayes, Meta’s Vice President of Product for Generative AI, recently conveyed insights during an interview with the Financial Times concerning the company's ambitions to develop AI-generated “characters” for use on Facebook and Instagram. These digital personas would be designed to mimic authentic user engagement, complete with generated stories and photos, in an effort to stimulate organic interaction on the platforms. However, this initiative raises concerns among advertisers and users alike, as it diverges from Meta's traditional policies that prohibit the creation of fake accounts.
An example that sparked controversy involved an AI-created account named “Liv,” which was active briefly in September 2023 and portrayed itself as a queer Black mother. Despite its eventual removal, the account generated discussions among users regarding its authenticity and the implications of AI-generated personas. Liz Sweeney, a spokesperson for Meta, told 404 Media that “Liv” was part of an earlier experiment unrelated to the plans discussed by Hayes. Nonetheless, the backlash generated conversations about the role of AI on social media platforms and its potential to foster deeper engagement, despite the misgivings associated with such interactions.
Shifting focus to privacy concerns, Apple recently reached a $95 million settlement to resolve a class-action lawsuit linked to alleged privacy breaches involving the “Hey, Siri” feature. Plaintiffs alleged that their conversations inadvertently activated Siri, leading to recorded audio snippets used to tailor targeted advertisements. The case accentuates the potential privacy infringements associated with voice-activated technologies. Notably, Apple has maintained its stance of innocence regarding these allegations.
In the retail sector, a significant trend is emerging as three major retailers – Walmart, Amazon, and Costco – dominate the market, capturing 57% of retail sales growth over the past decade, as reported by The Wall Street Journal. These giants have an advantage not only in scale but also through membership models like Amazon Prime, Walmart+, and Costco that incentivise consumer loyalty. Consequently, smaller retailers are feeling pressure, with recent struggles leading to the collapse of several national chains and a dwindling market cap for traditional department stores such as Macy's.
As we look forward to the future of advertising, there are indications of a significant increase anticipated in 2025. Various industry publications are also discussing the complexities of advertising practices that diverge into unexpected realms, such as the selling of gun silencers masqueraded as car parts on social media platforms. The digital landscape continues to evolve with various companies, including rising challenges faced by AI firms like Anthropic, currently navigating copyright disputes with music publishers.
The broader implications of these developments suggest that as AI continues to penetrate various business sectors, the strategic manoeuvring of companies will be crucial in maintaining relevance and profitability whilst addressing growing consumer concerns about privacy and authenticity in digital interactions.
Source: Noah Wire Services