Meta, formerly known as Facebook, has unveiled a suite of artificial intelligence (AI) features, including chatbots and AI-generated stickers, in a bid to capture the interest of Generation Z (Gen Z). The tech giant introduced these features during its Connect developer conference on Wednesday, September 27. This move is significant as Gen Z represents a highly sought-after demographic for both retailers and technology behemoths. However, Meta faces stiff competition from rivals such as Snapchat and OpenAI, all vying for the same slice of Gen Z’s attention.
Comprising over 40% of the global consumer base, recent research by McKinsey indicates that Gen Z is a consumer demographic known for its willingness to spend, even in periods of economic instability. Nonetheless, they are discerning and quick to abandon products or services that fail to meet their expectations. According to Chris Callison-Burch, a professor at the University of Pennsylvania, Gen Z is poised to be the primary adopter of AI technologies.
Kobie Fuller, partner at Upfront Ventures and an investor in AI, believes that Meta’s AI chatbots show promise but acknowledges that there is room for improvement, particularly in the realm of celebrity chatbots. In an interview with Yahoo Finance, Fuller expressed reservations about the authenticity of accounts managed by Meta, stating, “From the way it was initially marketed — or lack thereof — it just seems cringe. If Naomi Osaka is going to have an alter ego, and it’s not really her account, that doesn’t seem like it’s primed to feel authentic.”
Marcie Merriman, the cultural insights and customer strategy leader for EY Americas, advises companies to ensure a smooth rollout of new AI products to avoid losing the interest of Gen Z. “There’s so much stuff out there that works badly,” Merriman cautioned. “Throwing something out there when it’s not ready for prime time can backfire and create mistrust.”
For Meta, and any company aiming to establish a foothold with Gen Z, success hinges not only on immediate adoption but also on building a long-term relationship. Dr. Muddu Sudhakar, CEO and founder of Aiersa, estimates that this revolution will unfold over the course of a decade or more. “Gen Z will grow up with it, and it’s a long-term investment,” Sudhakar affirmed.
Meta faces the challenge of creating an AI product that is not only authentic and engaging but also resonates with young consumers. While the future of the AI features of Meta remains uncertain, it represents a project with immense potential for technology companies seeking to connect with Gen Z.
Source: Yahoo Finance
