UBS: Meta Platforms seen unveiling AI-powered chatbot at September developer event

Investing.com -- Facebook-owner Meta Platforms (NASDAQ:META) is expected to introduce a new consumer chatbot powered by generative artificial intelligence at its Connect developer event next month, analysts at UBS predicted Monday.

In a note to clients, the UBS analysts said the technology is anticipated to be available "across WhatsApp, Instagram, and Facebook," referring to three of the major social media offerings run by Meta.

The move would position the California-based company to grab a slice of the around $200 billion market for search advertising, the UBS analysts argued, adding that the chatbot could boost Meta's revenue by more than $20B.

"We see this providing yet another leg to Meta's bull case," the UBS analysts said.

During a call with analysts last week following the group's latest earnings, Meta Chief Executive Officer Mark Zuckerberg promised to unveil more details about the chatbot at Connect. But he broadly outlined his vision for AI as a tool that can be used to "act as assistants, coaches or that can help you interact with businesses and creators."

He noted that Meta is currently developing an AI bot that help businesses conduct customer service, along with an internal AI tool aiming to promote staff productivity.

However, it was still unclear how Zuckerberg plans to convert AI into a source of revenue. He also flagged that AI investments are seen driving up operating costs next year.