Clara Shih, former CEO of AI at Salesforce, has joined Meta to lead a new Business AI group that aims to bring artificial intelligence tools to the 200 million businesses using Facebook, Instagram, and WhatsApp. Shih announced her move in a LinkedIn post on Tuesday, describing her excitement about making cutting-edge AI accessible to millions of businesses using Meta’s platforms.
Why it matters: Meta's hiring of Clara Shih signals an aggressive push to monetize its AI technology through business applications, potentially reshaping how millions of companies interact with Meta's platforms.
The big picture: Meta is taking a distinctly different approach to AI monetization compared to competitors like OpenAI and Google, focusing on enhancing its existing advertising ecosystem rather than selling AI subscriptions.
Behind the scenes: This move comes at a crucial time for both companies:
- For Meta: The company is betting big on AI integration across its platforms, recently introducing AI-generated content in Facebook feeds and Instagram chatbots
- For Salesforce: The company has struggled to convince investors of its AI strategy, with its stock suffering its steepest drop since 2008 in May
What we're watching: How Meta will monetize these business AI tools. The company could offer them free to drive ad spending and/or create new revenue streams through direct AI tool sales.
The bottom line: Meta's approach to AI monetization is taking shape, focusing on empowering businesses rather than selling AI services directly to consumers.