Recent innovations in artificial intelligence (AI) promise to create significant economic value for businesses by enhancing efficiency and productivity. Major beneficiaries of this trend have been companies involved in the development of large language models, fundamental to generative AI. Long-term gains may go to companies that effectively leverage AI to improve their operations and assist others in doing the same. Meta Platforms (META) is considered a potential long-term victor in this space, with analyst Ralph Schackart from William Blair estimating a $100 billion opportunity for the company. Meta aims to facilitate AI interactions between businesses and customers, which could boost its share price by about 67% in the coming years. Meta has been developing tools to help businesses create AI chatbots, launching an alpha test in September 2023. As it expands these services to all businesses using its platform, the opportunity grows significantly. With over 200 million businesses on its apps, Meta has a large market for its AI tools. Schackart predicts that many businesses will opt to use AI to handle customer interactions on WhatsApp, leading to an estimated 1. 6 chatbot conversations per user daily by 2030. This could translate to a revenue opportunity of $45 billion at an average cost of $0. 04 per conversation, with potential auction pricing allowing Meta to exceed $100 billion from businesses. Historically, Meta has struggled to monetize its advanced features, as its WhatsApp Business Platform generates less revenue than its advertising division.

Thus, it might be more effective to integrate AI chatbot monetization into its advertising products, especially click-to-message ads on Facebook and Instagram, allowing for wider adoption and long-term benefits. Businesses using AI chatbots could handle more customer interactions and close sales more cost-effectively, increasing the value of click-to-message advertising. Meta may adopt a hybrid monetization approach. Currently, WhatsApp for Business allows free messaging for clicks initiated via ads for the first 72 hours, while businesses may be willing to pay more for AI-assisted conversations afterward to avoid human agent costs. For investors, Meta already ranks as a major player with an estimated revenue of $163 billion in 2024, projected to rise to $186 billion this year. An additional $100 billion in revenues by 2030 could significantly enhance its financial position. However, Meta is investing heavily in AI, with capital expenditures expected to be between $38 billion and $40 billion in 2024. This investment may impact earnings due to future depreciation expenses, especially as AI operation costs are high at its scale of 3 billion monthly users. As Meta works to reduce AI inference costs, the profitability of its chatbots should improve. If the anticipated $100 billion opportunity materializes, the investment in AI will be justified, potentially expanding profit margins despite rising costs. If Meta maintains its current price-to-sales multiple, a $100 billion increase in revenue could lead to a 67% increase in its stock value.