Meta Platforms Increases AI Investments and Expands Partnerships for Enhanced Engagement

Meta Platforms is stepping up its investment in artificial intelligence in the fiscal year 2025, raising its capital expenditure forecast to a range between $64 billion and $72 billion. This strategic move aims to bolster its AI-driven applications and personalized advertising capabilities. By focusing on AI-generated advertisements and strengthening collaborations, like the one with EssilorLuxottica for AI-enabled smart glasses, Meta intends to heighten user and business engagement across its platforms.

However, the company may encounter some challenges. Consumers are currently feeling the pinch of tighter budgets, resulting in a shift towards using “buy now, pay later” (BNPL) apps for everyday purchases, including groceries and utility bills. This economic pressure could potentially influence Meta’s growth trajectory by affecting consumer spending patterns.