Meta is establishing a dedicated product unit aimed at creating AI tools for the 200 million businesses using its platforms, with a significant leadership move that signals the company’s strategic AI ambitions.

This content originally appeared in Axios by Sara Fischer and Tech Crunch by Maxwell Zeff.

Key Leadership Change
Clara Shih, previously CEO of Salesforce AI, has been hired to lead Meta’s new Business AI group. In her own words, the vision is to “make cutting-edge AI accessible to every business, empowering all to find success and own their future in the AI era.”

As part of this leadership transition, Adam Evans, another Salesforce AI executive, is set to succeed Shih in overseeing Salesforce’s AI efforts. Interestingly, Shih is not entirely new to the Meta ecosystem, having authored a book titled “The Facebook Era” back in 2009, which suggests a long-standing intellectual connection to the company well before her current role. This prior engagement indicates Shih’s long-term interest in and understanding of social media platforms and their potential for business transformation.

Strategic Approach and Business Model
Meta’s approach to AI differs from competitors like OpenAI or Google. Instead of selling AI chatbot subscriptions, the company is betting on its Llama large language models to enhance its existing app ecosystem.

Current AI Capabilities

• Over 500 monthly active users for Meta’s AI chatbot
• Llama open-source language model has been downloaded more than 600 million times
• CEO Mark Zuckerberg reports businesses using AI tools see up to 7% increase in conversion rates

Potential Business Tools
The new group will likely focus on AI products for businesses across Instagram, Facebook, and WhatsApp, with potential offerings including:

• AI-generated advertisement creation
• Content generation tools
• AI chatbots for customer interaction

Monetization Strategy
It remains unclear whether these tools will be:

• Offered for free to drive ad spending
• Sold as standalone products
• Used as a mechanism to enhance Meta’s primary advertising revenue

Industry and Technological Context
The company is making a notable shift from exclusively human-generated content, incorporating:

• AI-generated photo carousels on Facebook
• AI chatbots mimicking content creators on Instagram

Shih’s move to Meta comes in the wake of a challenging period at Salesforce, characterized by significant financial and strategic challenges. In May 2023, the company experienced a substantial drop in its share price, with investors expressing deep concern about potential missed opportunities in the rapidly evolving AI landscape. In response to these challenges, Salesforce has aggressively pivoted its strategy, doubling down on AI innovation by launching the Agentforce platform and seeking to reestablish its competitive position in the technological marketplace.

Future Outlook
The new product group aims to:

• Develop deeper customer relationship tools
• Create AI solutions that address businesses’ technological uncertainties
• Provide efficient, user-friendly AI technologies

This strategic initiative underscores Meta’s commitment to positioning itself at the forefront of business-focused AI innovation.