On April 18, 2024, Meta released their AI assistant that was built by Llama 3 on their family apps including Instagram, Facebook, Messenger, and WhatsApp. According to Meta, Meta AI is “now the most intelligent AI assistant you can use for free.” Users can now use Meta AI in feeds, chats, search, and more, directly in its family of apps without leaving the app itself, which makes it more convenient for the user to “get things done.”

Meta AI’s capabilities on Instagram include assisting users with various tasks as seen in the image below. Users can simply @MetaAI, followed by their request. Once the request is sent in messages, Meta AI generates a response directly in the chat, visible to all users in the conversation.

According to The Verge, the Meta AI assistant is the only chatbot that integrates real-time search results from both Bing and Google, meaning Meta’s algorithm determines which search engine to use based on the nature of the query, ensuring comprehensive and accurate responses to user prompts. 

Another notable feature of Meta AI is its image generation capability. Unlike other AI image generators that may have limited usage or require premium subscriptions, Meta AI offers free and fast image generation. With Meta AI’s Imagine feature, users can create images and GIFs from text in real-time. This feature is currently in beta and rolling out on WhatsApp and the Meta AI web experience in the US. 

Meta AI also prioritizes user privacy by requesting specific information instead of automatically accessing account data. Unlike other chatbots that users can enable or disable, Meta AI is permanently integrated into Meta’s apps. Initially, there were reports of confusion regarding its disablement, but Meta clarified that the chatbot cannot be removed.

With the recent release of Llama 3 and Meta AI, it is more clear what path Mark Zuckerberg wants to go down. Rather than solely emphasizing the established social aspects of their apps, he’s prioritizing expansion and concentrating on the Reality Labs sector. By integrating AI elements into social media, Zuckerberg aims to offer users a new experience, providing Meta with a competitive advantage in the market. 

Like every other social media platform, TikTok generates the majority of its revenue through advertisements on the app. But they are trying to diversify their streams of revenue as its “American growth is already stalling.” In September 2023, Tiktok launched Tiktok shops and allowed live shopping where brands could live stream and link their products so users could directly check out. This attempt is to mimic Douyin’s growth trajectory in China, where its biggest revenue driver is shopping live-streams. 

According to The Information, TikTok is working on a new feature that would let brands use virtual influencers. It’s unclear if Western audiences will embrace these AI-generated influencers, who can promote and sell products via videos and live-streams on the app.

This feature would create a video ad script based on the advertiser’s input and generate an AI influencer to feature in the video. Additionally, TikTok Shop merchants could utilize this AI influencer tool to promote their products. The effectiveness of this feature has already been observed on Douyin, where it has seen significant success due to its cost-effectiveness. “These simulated characters are able to stream 24/7, sometimes selling thousands of dollars worth of goods every day.”

Since 2022, numerous Chinese startups and tech companies have been providing a service to create deepfake avatars for e-commerce live streaming. By providing a brief sample video and investing around $1,000, brands can replicate a human streamer that operates around the clock. All brands have to do is input the name and price of the product being sold and proofread the generated script before the AI influencer goes live. These influencers can interact with the audience and modify their scripts in response to real-time situations.

While TikTok users demonstrate a willingness to spend within the app, the majority of these transactions are directed towards creator donations rather than purchases from the TikTok Shop or its shopping streams. Although there are indications of potential growth in this area, TikTok’s shopping activity lags significantly behind that of Douyin. In 2023, TikTok recorded approximately $3.8 billion in consumer spending, compared to $270 billion on Douyin. Despite efforts from ByteDance to stimulate interest through different approaches, TikTok’s adoption of shopping features has been notably slower than Douyin. Therefore, virtual influencers could be the catalyst that propels TikTok’s commerce streams to the next level.

BeReal was the trending social app that gained significant attention starting in 2022 due to its unique “in-the-moment photo-sharing feature.” This feature allowed users to capture unfiltered and unedited photos, promoting authenticity and spontaneity. This approach quickly became a trend, distinguishing BeReal from other social media platforms where filtered and edited content was prevalent.

The company successfully secured $90 million in funding and achieved a valuation of $600 million during its rapid growth phase, indicating the high potential recognized by professionals and investors in the app. In 2023, the company continued its efforts to attract more users by introducing new features and collaborating with brands and influencers. Despite the company’s efforts to enhance its appeal with new features, the app’s growth has slowed down. A report by Business Insider highlighted that the initial enthusiasm has died down due to challenges in retaining and attracting users amid financial difficulties. Although BeReal currently has “40 million monthly active users and 25 million daily active users, up from 20 million in 2022,” this growth is not viewed favorably by investors, contributing to the company’s funding challenges.

During a February all-hands meeting, employees were alerted that the app had around ten months of funding remaining before encountering financial difficulties. Currently, the leaders of BeReal are evaluating their options as sustained growth becomes challenging. The company is contemplating raising a Series C round of funding before exhausting the remainder of its $90 million funding. However, this could pose challenges, as investors may be reluctant to invest in a company experiencing slow growth. Another option under consideration is being acquired by a big tech company. 

Despite facing challenges, BeReal must devise a strategy before its funding runs out. As a social app, it faces tough competition from platforms like Instagram, Facebook, and others. The fate of the app lies in the hands of BeReal and its leadership. Will it be a short-lived trend or hold substantial long-term value? Other apps like Clubhouse, Peach, Vine, and Google+ were once seen as having great potential but ultimately fell short due to various reasons. To avoid a similar fate, BeReal must innovate to retain and attract users effectively while also focusing on monetization strategies for long-term stability.

On March 5, a group of U.S. lawmakers from both political parties presented a bill proposing that China’s ByteDance be given approximately six months to sell off its widely-used short video platform TikTok or else risk being banned in the United States. This action is intended to alleviate national security concerns arising from China’s ByteDance’s ownership of the app.

Although Tiktok has stated before that it remains separate from its Chinese ownership, various reports still continue to raise concerns about ByteDance abiding by China’s cybersecurity laws and providing U.S. user data to the CCP. 

Despite not being explicitly labeled as a bill aimed at banning TikTok, a company spokesperson commented that “this bill is an outright ban of TikTok, no matter how much the authors try to disguise it.”. Many others held the same opinion, as this proposed legislation threatens the First Amendment rights of 170 million Americans and strips 5 million small businesses of a crucial platform for their growth and jobs. Although the ban will affect millions of Americans and small businesses, this will also affect and increase the tensions between the U.S. and China, as the U.S. has increased sanctions against China, specifically in technology. Concerns about China’s access to semiconductors and its alignment with Russia’s actions in Ukraine may increase the chance of a TikTok ban. Additionally, if the U.S. ultimately decides to ban TikTok, then other western regions will most likely follow in their footsteps and do the same. 

As a response to Tiktok’s potential ban, they took this matter into their own hands and issued a “rallying call to U.S. users in the app, with this pop-up alert appearing in-stream, making it easy for users to call their House representative.” Tiktok used this strategy last year, in March, when the White House voted to give the President the power to ban the app. They are hoping to use the same strategy to mobilize their user community and influence the outcome once again.

With each escalation in the U.S.-China relationship, the likelihood of a TikTok ban grows. Even if Congress fails to ban TikTok this time around, the threat to the app’s survival persists. Any further conflicts between the two nations could impact TikTok, potentially leading to its downfall.

Recently, Xiaohongshu has been “talking a big game about its ability to transform into an e-commerce platform,” as they just released their “rise100” list, where it ranks 100 merchants, brand ambassadors, and key opinion leaders that have navigated and found success on their platform based on their growth and other metrics. This shift indicates a strategic focus on e-commerce/commerce for Xiaohongshu, as it places a heavy reliance on advertising revenue, leaving it susceptible to adverse macroeconomic conditions.

Ever since their launch in 2013, Xiaohongshu has faced pressure to make money, as 80% of their revenue comes from advertising and they “shed up to half their implied valuation over 2022.” The platform predominantly attracts urban women in their twenties to early thirties, who utilize it to discover various lifestyle offerings such as restaurants, bars, quality clothing, makeup, and vacation destinations. However, a problem for Xiaohongshu is the reluctance of users to make direct purchases within the app. Despite actively seeking products on Xiaohongshu, users often find themselves redirected to other platforms to complete their purchases, posing a substantial obstacle. To keep users within its “business loop,“  they decided to block links from Taobao, which prevents users from accessing Taobao links that redirect them to Taobao’s merchant page. By restricting access to Taobao links, Xiaohongshu aims to encourage users to remain within its platform, promoting engagement and potentially increasing the likelihood of users making purchases directly through Xiaohongshu’s own ecommerce channels.

Another solution and direction Xiaohongshu has shifted towards is leveraging influencers as brand ambassadors. These influencers promote products from third-party brands and receive a share of the sales revenue. They encourage their followers to use in-app links that lead directly to Xiaohongshu’s checkout, streamlining the purchasing process and keeping users engaged within the platform. This strategy has demonstrated success, as indicated by the increase in the number of merchants on the app and in-app sales, as reported by the company.

To further bolster Xiaohongshu’s efforts to increase traffic and enhance its commercialization efforts, the platform recently collaborated with the ‘Spring Gala Festival,’ gaining over 27 million views and 170 million user interactions. Additionally, Xiaohongshu introduced a new “nearby” feature, streamlining user access to an interactive map showcasing notes, group chats, and live streams related to local food, drink, and entertainment options. This strategic initiative aims to penetrate the local life service sector, currently dominated by Meituan. 

As of February 1st, Universal Music Group’s Songs have been withdrawn from Tiktok as a result of both parties failing to reach an agreement that would best fit their conditions and needs. The termination of the contract, signed back in 2021, is due to Universal’s perception that TikTok is not offering adequate compensation for their artists.“ In the statement UMG released on January 31st, they voiced their concerns about appropriate compensation for their artists and songwriters and protection from the harmful effects of AI for their artists. They emphasized that TikTok tried to pressure them into accepting a deal worth less than their previous one, which they consider below Fair Market Value and not reflective of their significant growth. 

In response to UMG’s statement, Tiktok expressed their disappointment in UMG’s decisions as they put their own greed above the interests of their artists and songwriters and chose to walk away from free promotional and discovery vehicles for their artists’ and songwriters’ talent. They also stated they had been able to reach ‘artist-first’ agreements with other labels and publishers yet, “Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”

This could potentially have a substantial impact on TikTok, given that music plays a vital role in their app. Content creators, artists, and viewers alike share their passion through music. With the termination of the contract, previous TikToks featuring songs from UMG have been silenced, with a note at the bottom stating, “This sound isn’t available.” This scenario has left numerous creators feeling frustrated, as some of their videos have been muted, resulting in a noticeable decrease in views.

This is not only a big change for TikTok but for UMG as well. Universal is home to some of the world’s most popular music stars including Taylor Swift, Ariana Grande, Drake, Adele, Post Malone, Lorde and more. These artists had no say in the termination between their company and Tiktok. 

The dispute between Universal Music Group and TikTok is more than just a contractual disagreement; it represents a clash of priorities and values within the music industry. While both parties strive to protect their interests and those of their respective artists, this decision affects both parties. This also serves as a reminder of the significance of relationships between platforms, labels, artists, and fans, and the balance required to sustain a thriving ecosystem in today’s digital world.