Snap Inc., the parent company of Snapchat, is significantly increasing its spending on artificial intelligence (AI) and machine learning. CEO Evan Spiegel admitted that Snap had fallen behind in these areas, impacting business performance. “We needed to improve there and bring together some of our most senior machine learning folks to just talk about what it would look like for us to get to state of the art and really invest,” Spiegel told Bloomberg News.
Snapchat, originally focused on messaging, is now integrating AI, machine learning, and augmented reality (AR) into its platform. Over 70% of new users engage with AR features on their first day. “AR enables us to surface digital experiences seamlessly in the world around us,” Spiegel said.
Instead of building AI tools in-house, Snap is partnering with Amazon and Google. This allows the company to concentrate on product innovation while leveraging these tech giants’ infrastructure. Snap plans to spend around $1.5 billion annually on infrastructure, or 84 cents per daily user each quarter.
Snap’s $1.5 billion annual investment in AI and machine learning aims to enhance user experiences and provide advertisers with more effective engagement tools. Can they succeed? We have to wait to see it. Their first attempt to embrace artificial intelligence, My AI, backfired back then.
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