Comment by scuff3d
2 days ago
That means absolutely nothing in the context of this conversation. It says right in their release ad impressions are up almost 20% and cost per add is up 12%. Those two metrics alone account for most of the increase in their revenue. Absolutely no conclusion can be drawn regarding the impact of AI on those numbers one way or the other.
It's not like they used AI to crank out some new revenue generating piece of software, or massively reduce operating costs. In fact their operating costs rose by 35%.
> It says right in their release ad impressions are up almost 20% and cost per add is up 12%
Have you wondered why this is the case? How do you think they increased impressions so much at their scale? How they did this despite losing 20M users?
To put it clearly, AI at every part of the pipeline: writing software, product features/experiments, A/B testing them, and pushing them out to users. Even before you get to something like LLM driven recommendations, you can virtually entirely automate the process of finding more "engagement alpha" with AI.
If you have an evidence from their financial releases showing a correlation between AI usage and increased revenue I'd love to see it. Otherwise you're just making wild ass guesses.
Edit: Also, historically Meta has been growing revenue by 30 to 50 percent for the last decade. With the only exception being 2022 and 2023. So it's not like recent performance is an outlier.
Growth is exponentially harder the bigger you get. You can't take previous years as your base case.
1 reply →