Meta’s AI-Powered Chatbots Set to Revolutionize WhatsApp
A New Era of Intelligent Conversations
A recent analyst report suggests that Meta Platforms, the parent company of Facebook, could be on the verge of a massive financial windfall thanks to the integration of generative AI-powered chatbots on its WhatsApp messaging service. This development could potentially transform the way businesses interact with customers, driving e-commerce sales and boosting revenue.
The Rise of Intelligent Conversations
According to William Blair analyst Ralph Schackart, these chatbots will evolve from simple customer service agents to top-of-funnel assistants, enabling more personal and intelligent conversations between businesses and customers. With an estimated 2.7 billion users on WhatsApp, the potential for growth is vast.
Monetizing the Opportunity
Meta is currently testing its GenAI tools with businesses on WhatsApp in English-speaking countries, charging a fee of 2.5 cents per conversation every 24 hours. However, Schackart believes there is significant room to increase pricing as customers become more comfortable interacting with chatbots. He estimates that generative AI chatbots could deliver incremental revenue of $16.6 billion in 2025 and up to $45 billion by 2030.
A Boost to Meta’s Stock Price
Schackart’s bullish view on Meta’s stock price could see it reach 750 within the next 12 months, driven by the potential revenue growth from its AI-powered chatbots. This comes as Meta is planning a broader push into offering AI services to businesses, with the recent hire of former Salesforce AI CEO Clara Shih to lead its Business AI group.
WhatsApp at the Forefront
WhatsApp, acquired by Meta in 2014, is set to play a central role in the company’s AI efforts. Meta already offers click-to-message ads on Instagram and Facebook, which launch conversations between users and businesses on WhatsApp or its Messenger app. Revenue from these ads exceeded $10 billion annually in 2023.
Meta’s AI Ambitions
The company has invested heavily in developing its own AI large language model, called Llama, which is open-source and available for other developers to use. Llama powers the Meta.ai chatbot, which has been integrated into Facebook, Instagram, and other Meta apps.
Meta Stock on the Rise
With the news, Meta stock rose 3% to 614.31, retaking a 602.95 flat base buy point. The social media stock has an IBD Composite Rating of 98 out of a best-possible 99, making it an attractive option for investors.
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