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# Meta Makeover, AI Takeout, Algorithms at Risk
- URL: https://www.nearmedia.co/meta-makeover-ai-takeout-algorithms-at-risk/
- Published: 2023-07-28T18:34:27.000Z
- Updated: 2023-07-28T18:40:29.000Z
- Author: Greg Sterling
- Tags: News

### Meta's Image Makeover 

Meta is back. Not long ago, the company was reeling from Apple's privacy changes, a bad bet on the metaverse, the rise of TikTok and constant, negative press. Then came "the year of efficiency" (read: layoffs), a pivot to AI, Twitter's decline (+ [Threads](https://www.nearmedia.co/twitter-vs-threads-peakgpt-500m-for-local-news/)) and a return to ad revenue growth. Earlier this week Meta [posted](https://www.cnbc.com/2023/07/26/meta-to-report-second-quarter-earnings-after-the-bell.html?ref=nearmedia.co) better than expected [revenues](https://s21.q4cdn.com/399680738/files/doc%5Fnews/Meta-Reports-Second-Quarter-2023-Results-2023.pdf?ref=nearmedia.co) (up \~12% to $32 billion) and upbeat Q3 guidance, though usage was flat. AI and the return of ad-revenue growth takes some of the pressure off when it comes to continued metaverse spending, which CEO Mark Zuckerberg has vowed to do. (Meta's reality labs [has lost more than $21 billion](https://www.cnbc.com/2023/07/26/metas-reality-labs-has-now-lost-more-than-21-billion.html?ref=nearmedia.co) since early 2022.) Zuckerberg reaffirmed the company's commitment to the metaverse on the [earnings call](https://seekingalpha.com/article/4620268-meta-platforms-inc-meta-q2-2023-earnings-call-transcript?ref=nearmedia.co). He also sounded confident notes about Threads, [suggesting](https://www.theverge.com/2023/7/26/23809080/mark-zuckerberg-meta-q2-earnings-threads-one-billion-users?ref=nearmedia.co) it could eventually get to a billion users. And, finally, the company got [a kind exoneration from academics](https://about.fb.com/news/2023/07/research-social-media-impact-elections/?ref=nearmedia.co) who published studies that showed political polarization was not directly driven by social media – although the [reality is more complex](https://www.nytimes.com/2023/07/27/technology/facebook-instagram-algorithms.html?ref=nearmedia.co). 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/07/Screen-Shot-2023-07-28-at-11.18.56-AM.png)

Source: Meta

****Our take:**

- Meta has more competition than Google for its ad products, but it's also in a dominant position. So as ad spending returns, so do its revenues.
- While AR and VR will ultimately find their markets, it's not clear that "the metaverse" as imagined by Meta will ever materialize.
- Meta's open-source Llama 2 AI tool could displace others that seek to monetize AI with subscriptions (OpenAI) and with developers.

### AI Handles 1M Take-Out Orders

Google announced Duplex in May 2018 at Google I/O. An [impressive, human-sounding AI](https://searchengineland.com/machine-reservations-googles-duplex-expanding-to-more-android-iphone-users-314948?ref=nearmedia.co) (part of Google Assistant), it was intended to help consumers make restaurant (and other) reservations. It still exists but it's unclear anybody's using it. Not long after that Google beta-tested CallJoy, a $39 per month virtual agent that answered calls, filtered spam and provided basic business information to callers. It [shut down](https://searchengineland.com/google-to-shutter-calljoy-virtual-agent-for-smbs-on-july-22-336518?ref=nearmedia.co) a year later. But where Google has largely failed, smaller companies are succeeding. One is [HungerRush](https://www.hungerrush.com/products/orderai/?ref=nearmedia.co), a restaurant SaaS company that offers multiple tools including AI-automated phone orders. (SoundHound [does this too](https://www.soundhound.com/?ref=nearmedia.co).) One of HugerRush's customers, pizza chain Jet's Pizza, has seen big success with its AI phone assistant. Jet's Pizza [reportedly](https://www.pymnts.com/news/artificial-intelligence/2023/hungerrush-chief-revenue-officer-voice-ai-solves-pizzerias-phone-problem/?ref=nearmedia.co) has taken more than 1 million AI phone orders successfully. Its CRO said that "the technology is more accurate, efficient and consistent than many human employees." 

****Our take:**

- We know AI will be taking over customer service for many companies. But vertical implementations will be perhaps the most successful.
- This technology appears to be a big win for take-out restaurants and consumers as well. It's also being [used at QSR drive-throughs](https://www.wsj.com/articles/can-ai-replace-humans-we-went-to-the-fast-food-drive-through-to-find-out-193c03e9??ref=nearmedia.co).
- Other than its industry focus, there's nothing unique about HungerRush that other companies and industries couldn't duplicate.

### CA Privacy Rule Imperils Algorithms 

California residents may, in the relatively near future, be able to opt-out of "automated decision-making" across a range of industries and use cases: employment, education, housing, insurance, banking, healthcare and others. Automated decision-making is broadly defined as "any system, software, or process—including one derived from machine-learning, statistics, or other data processing or artificial intelligence \[that\] uses computation ... to make or execute a decision or facilitate human decision making." The language in this [proposed rule](https://cppa.ca.gov/meetings/materials/20230714%5Fitem6.pdf?ref=nearmedia.co) is being developed by the [California Privacy Protection Agency](https://cppa.ca.gov/?ref=nearmedia.co) (CPPA), a regulatory body established under the California Privacy Rights Act of 2020 (CPRA). Potentially, for consumers who opt-out, automation would need to be replaced by a human decision-maker. The rulemaking process is ongoing but CPPA has final authority; it doesn't go to voters. Many practical elements of the rule remain to be worked out. But it's terrifying to tech companies, which are ramping up lobbying efforts against it. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/07/Screen-Shot-2023-07-28-at-9.45.39-AM.png)

Source: Bing Image Creator

****Our take:**

- Tech lobbyists argue opt-out rights shouldn't exist if humans have the final say – but that might be perfunctory.
- If it remains fairly broad, this rule could imperial use of any software-aided decision-making tools in numerous industries.
- The CPPA will need to find a balance between protecting against impersonal (and potentially biased) algorithms and recognizing how deeply integrated they already are into practically everything.

## Short Takes

- Coming soon: **Apple's Link Tracking Protection**, [rolls out with iOS 17](https://www.marketingdive.com/news/what-ios-17-means-for-marketers-link-tracking/689126/?ref=nearmedia.co).
- Google: **LSA review form** [not to be used](https://www.seroundtable.com/google-local-service-ads-review-dispute-form-update-35727.html?ref=nearmedia.co) for GBP review disputes.
- Core-ish update: **Yelp** [saw big SERP declines](https://twitter.com/lilyraynyc/status/1684265455479816203?ref=nearmedia.co) but has recovered.
- **Snap Map** has [7X the users of Mapquest](https://www.linkedin.com/posts/randymeech%5Fthe-snap-map-lets-snapchatters-explore-their-ugcPost-7089955173422227456-HZ-x/?ref=nearmedia.co) at its peak.
- Foot Locker: getting more **thumbnails in SERP** \= [ranking/CTR boost](https://brodieclark.com/foot-locker-image-seo/?ref=nearmedia.co).
- Only **4-star rating** businesses [can rank](https://searchengineland.com/google-reviews-local-seo-unleash-potential-429883??ref=nearmedia.co) for "best ..." searches.
- **GBP descriptions** [get "footnotes](https://twitter.com/Miriam%5FEllis%5F/status/1684284113879195654?ref=nearmedia.co)" that link to nothing.
- **TikTok** is [affecting fast-food restaurants](https://www.mashed.com/1337295/how-tiktok-influences-fast-food-sales-prices/?ref=nearmedia.co)' bottom lines.
- **Anthropic, Google, Microsoft, OpenAI** [form](https://blog.google/outreach-initiatives/public-policy/google-microsoft-openai-anthropic-frontier-model-forum/??ref=nearmedia.co) "responsible AI" body.
- Major carmakers [to collaborate](https://www.theverge.com/2023/7/26/23808270/bmw-honda-gm-joint-venture-north-american-ev-charging-network?ref=nearmedia.co) on **EV charging network**.
- **Google Nest** hacked to showcase [virtual assistant 2.0](https://www.linkedin.com/posts/vblackwell%5Fthis-is-the-future-an-indie-hacker-just-ugcPost-7090079606757539840-J1Hb/?ref=nearmedia.co).
- **Amazon** [lays off hundreds](https://www.cnbc.com/2023/07/26/amazon-cuts-jobs-at-fresh-grocery-stores.html?ref=nearmedia.co) of **Fresh** grocery workers.
- How long does **SEO** take "to work" – [3 to 9 months on average](https://searchengineland.com/how-long-seo-takes-429804??ref=nearmedia.co).
- A fascinating [inside view](https://twitter.com/esthercrawford/status/1684291048682684416??ref=nearmedia.co) of Musk and **Twitter's decline**.

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