WhatsApp has emerged as a key arena for AI chatbot competition, reportedly posing a potential challenge to Meta Platforms Inc.‘s (NASDAQ:META) AI dominance.
What Happened: WhatsApp, with over 3 billion global users, has become a prime platform for various AI chatbots, including those from OpenAI and Perplexity, alongside Meta’s own assistant, reported Business Insider. This intense competition could potentially hinder Meta AI’s goal of becoming the default choice for its billions of users.
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Notably, in the April earnings call, Meta’s CEO, Mark Zuckerberg, revealed that WhatsApp is “the largest surface that people use Meta AI on.”
WhatsApp, a primary battleground for consumer AI, is witnessing a surge in rival chatbots vying for user attention. Despite Meta AI being integrated into WhatsApp, the app’s strong usage continues.
OpenAI, which brought ChatGPT to WhatsApp last year, is working to make AI more widely accessible. Meanwhile, Perplexity’s chatbot, launched on WhatsApp this spring, experienced such overwhelming demand at launch that it briefly crashed.
These competing chatbots utilize the WhatsApp Business Platform, allowing them to reach WhatsApp’s vast global audience without requiring Meta’s direct approval. This is particularly beneficial in emerging markets such as India and Brazil, where WhatsApp is a primary communication tool.
Meta did not immediately respond to Benzinga’s request for comment.
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Why It Matters: The rise of AI chatbots on WhatsApp comes at a time when Meta is facing challenges. Just a day before this report, WhatsApp was banned on U.S. House devices over transparency and encryption concerns, further complicating Meta’s position.
However, Meta’s WhatsApp is not without its potential. An analyst recently estimated that Meta could potentially generate over $10 billion in annual ad revenue from its WhatsApp messaging service by 2028, indicating that the platform still holds significant value for the company.
Benzinga’s Edge Rankings place Meta Platforms in the 85th percentile for momentum and the 28th percentile for value, reflecting its strong performance in both areas. Check the detailed report here.
On a year-to-date basis, Meta stock surged 16.57%, according to data from Benzinga Pro.
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This article Mark Zuckerberg’s AI Dreams Hit WhatsApp Speed Bump As OpenAI, Perplexity Challenge Meta On Its Own Turf: Report originally appeared on Benzinga.com
