In a bid to capture the attention of the coveted Gen Z demographic, Meta, formerly known as Facebook, has announced a suite of cutting-edge artificial intelligence (AI) features. The announcement took place at the Connect developer conference held on Wednesday, September 27, marking a significant step for the tech giant. The move, however, comes amid intensifying competition, with Snapchat and OpenAI also vying for the same youthful market.
With Gen Z constituting over 40% of the global consumer base, this demographic holds immense importance for both retailers and tech giants. Recent research by McKinsey indicates that Gen Z is not only a sizable consumer group but also a remarkably adaptable one, willing to engage even during economic uncertainties. However, this generation is known for its skepticism and swift abandonment of products that fail to meet their expectations.
AI technology is expected to resonate profoundly with Gen Z, as noted by Chris Callison-Burch, a professor at the University of Pennsylvania. Meta’s unveiling of AI chatbots and AI-generated stickers represents a strategic move to capture this emerging market. Nevertheless, some industry experts remain cautious about Meta’s approach, particularly concerning celebrity chatbots.
Kobie Fuller, partner at Upfront Ventures and an AI investor, expressed his reservations about Meta’s celebrity chatbots, suggesting that Meta’s initial marketing strategy appeared “cringe-worthy.” He cited the fact that these profiles are labeled as “managed by Meta” and questioned their authenticity. “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,” Fuller stated in an interview with Yahoo Finance.
As Meta seeks to establish itself as a leader in this space, experts like Marcie Merriman, EY Americas’ cultural insights and customer strategy leader, emphasize the importance of a successful product rollout. Merriman cautioned that releasing AI features prematurely could backfire and erode trust among Gen Z consumers. “There’s so much stuff out there that works badly,” she warned.
Dr. Muddu Sudhakar, CEO, and founder of Aiersa, believes that Meta’s AI endeavor is a long-term investment. He estimates that it may take a decade or even two for the AI revolution to fully integrate into Gen Z’s lifestyle. “Gen Z will grow up with it, and it’s a long-term investment,” Sudhakar remarked.
Meta’s challenge lies in crafting AI products that resonate as authentic and engaging to young consumers. While the future of these AI features remains uncertain, the project undoubtedly holds great potential for Meta and other tech companies aiming to secure a foothold with Gen Z. As the battle for Gen Z’s attention intensifies, only time will tell which AI innovations will stand the test of time and capture the hearts and minds of this influential demographic.
Source: Yahoo Finance
