Meta and Alphabet's next quarter results will focus on AI

As Google fights off competition in its Search business, Meta's large push into the Metaverse hasn't gone as planned.

Next week, Alphabet and Meta will release their quarterly results, and artificial intelligence (AI) is going to be a big focus.

With OpenAI's ChatGPT and Microsoft's Bing AI making inroads into Google's dominance on the search market, Alphabet's Google faces an ever-growing threat.

According to reports, Google is already working on an AI project codenamed "Magi" that will be released in May 2023. Samsung reportedly told the company that it's considering switching to Bing as its default search engine.

Using Magi, users can search for content based on their preferences.

A huge push by Meta into the Metaverse hasn't turned out as planned. Putting together the technology has taken longer than expected, and some employees have expressed serious doubts about it.

According to MarketWatch, Meta's annual advertising revenue will reach $51.35 billion in 2023. Meta is looking to pivot its focus on AI in the short-term to increase revenue, according to a report in the publication.

During a recent interview with CBS, Alphabet and Google CEO, Sundar Pichai described AI as "the most profound technology mankind is working on", surpassing fire, water, and electricity. "We are developing technology which, for sure, one day will be far more capable than anything we've ever seen before," he added.

In the long run, Meta plans to create "AI personas that can help people in a variety of ways".

Furthermore, they are focusing on text (such as WhatsApp chat) and images (such as Instagram filters and ad formats) as well as video and multi-modal experiences.