Meta's business AI tools hit 10 million weekly conversations as ad revenue surges

Meta's Business AI Tools See Explosive Growth

Meta's business AI tools are experiencing remarkable traction, facilitating 10 million weekly conversations by late March 2026, compared to just 1 million at the beginning of the year 1

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. This tenfold increase was disclosed during the company's first-quarter earnings call on Wednesday, where CEO Mark Zuckerberg and CFO Susan Li outlined how AI is reshaping engagement and revenue across Meta's platforms 3

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The growth follows Meta's recent expansion of its business AI assistant beta program across the U.S., EMEA, APAC, and LATAM regions. While Meta's business AI tools remain free for most businesses on its messaging apps as the company pursues scale, Zuckerberg hinted at future monetization during the earnings call. "Business AIs today are currently free for most businesses on our messaging apps, but as we make more progress, we expect that we will also work towards establishing a longer-term monetization model," he stated 1

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Muse Spark Powers Next-Generation AI Capabilities

Meta has been integrating AI capabilities throughout its suite of business products, powered by its new large language model, Muse Spark. This represents the first model released under the Meta Superintelligence Labs division established last year 1

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. Muse Spark now powers Meta AI across all apps and the standalone Meta AI app, with sessions per user growing double digits following its introduction 3

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The company is also launching the open beta of Meta Ads AI Connectors this week, allowing advertisers to connect their Meta ad account to an AI agent for campaign management and optimization 3

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. This move signals Meta's commitment to providing AI-powered recommendation systems that enhance both user experience and advertiser performance.

GenAI Ad Tools Drive Improved Conversion Rates

Meta reported strong adoption of its GenAI ad tools, with more than 8 million advertisers now using at least one of these creative features. Adoption has been particularly strong among small and medium-sized businesses 1

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. Susan Li noted that advertisers using the video generation feature saw more than 3% higher conversion rates in tests, demonstrating tangible performance benefits 1

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The company's AI-driven ad delivery systems contributed to significant gains during the quarter. Enhancements to Meta's Lattice and GEM model architectures drove more than a 6% increase in the conversion rate for landing page view ads 2

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. Additionally, the Adaptive Ranking Model, which routes ad requests to the most effective models, contributed to a 1.6% increase in conversion rates across major platforms 2

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AI Driving Engagement Across Instagram and Facebook

AI is transforming user engagement across Meta's platforms. On Instagram, ranking improvements drove a 10% lift in Reels time spent, while Facebook saw total video watch time rise more than 8% globally, including a 9% increase in the US and Canada 2

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. Mark Zuckerberg noted that more than 3.5 billion people now use at least one of the company's apps daily 2

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Meta has significantly increased the speed at which its ranking models index new posts, enabling faster content recommendations. Same-day posts now account for more than 30% of recommended Reels across Instagram and Facebook, more than double the level from a year earlier 2

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. The company is also using AI to expand content accessibility, with over half a billion users on each of Facebook and Instagram now watching AI-translated videos weekly 2

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Increased Ad Revenue and AI Infrastructure Investment

The AI-driven improvements are contributing to Meta's financial performance. The average price per ad increased 12% year-on-year, while the company reported first-quarter profit of $26.8 billion, up from $16.6 billion a year earlier 1

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. Revenue reached $56.3 billion, up 33% from last year 1

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To support its AI ambitions, Meta is making substantial capital expenditures. The company raised its full-year guidance from $115 billion to $135 billion to a new projection of $125 billion to $145 billion, citing rising memory costs and additional data center capacity 3

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. First-quarter capital expenditure stood at $19.8 billion, reflecting increased investment in compute resources required for training and deploying advanced models 2

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Zuckerberg framed personal superintelligence as Meta's chief product goal during the earnings call, stating, "My view is that human progress has always been driven by people pursuing their individual aspirations" 3

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. As Meta continues to expand AI capabilities across its platforms, the company faces the challenge of balancing massive AI infrastructure investments with operational efficiency, even as it reportedly cuts jobs to offset these costs 3

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