So generally, I would say, we are building a lot more functionality into the Advantage+ tools over time. It’s also where a lot of our Gen AI ads creative features have been introduced and where advertisers have the opportunity to experiment with those and we’ll keep looking to apply what we learn from these products more broadly to our ads investments over the course of the year.
Operator: Your next question comes from the line of Ken Gawrelski from Wells Fargo. Please go ahead.
Ken Gawrelski: Thank you very much. As you look out through the coming period of product investment, how should we think about the relationship between Family of Apps revenue and cost growth? Is there any insight you can give us there? And then maybe just one that’s a little bit more specific to the G&A growth in 1Q. You called out legal expenses. Just wanted to see if there’s anything one time in there that would cause the elevated growth in 1Q. Thank you.
Susan Li: Yeah. On the second part of your question first, so on the G&A side that was really driven by legal expenses. We recognized some accruals in Q1 related to ongoing legal matters and you’ll see more detail on that in the 10-Q. On the first part of your question, which is really about sort of the kind of long-term margin profile of Family of Apps, we aren’t giving guidance on that per se. But one of the things that we really have been very disciplined about over the course of 2023 and continuing is really operating the business in a very efficiency oriented way. So we’re being very disciplined with allocation of new resources. This is a muscle that we really built over 2023 that we believe is important for us to keep carrying forward and I think you’ll see us continue to emphasize that especially with the Family of Apps business being at the scale that it is.
Operator: Your next question comes from the line of Ross Sandler from Barclays. Please go ahead.
Ross Sandler: Great. Mark, you partnered with Google and Bing for Meta AI organic search citations. So I guess, stepping back, do you think that Meta AI longer term could bring in search advertising dollars at some point or do you view this as what others are doing where you kind of attach a premium subscription tier once people kind of get going on it? And then the second question is you mentioned that you guys are working on building AI tools for businesses and creators. So just, I guess, how do you see the business model evolving when we all get to this stage of interacting with something like Taylor Swift’s custom AI for merchandiser tickets or something like that? How’s that going to play out? Thank you.
Mark Zuckerberg: All right. So yeah, on the Google and Microsoft partnerships, yeah, I mean, we work with them to have real time information in Meta AI. It’s useful. I think it’s pretty different from search. We’re not working on search ads or anything like that. I think this will end up being a pretty different business. I do think that there will be an ability to have ads and paid content in Meta AI interactions over time as well as people being able to pay for whether it’s bigger models or more compute or some of the premium features and things like that, but that’s all very early in flushing out. The thing that I actually think is probably the biggest clear opportunity is all the work around business messaging. That’s in addition to the stuff that we’re already doing, just generate, to increase engagement and ads quality in the apps.
But the business messaging thing, I mean, whether it’s a creator or one of the 100 plus million businesses on our platform. We basically want to make it very easy for all of these folks to set up an AI to engage with their community for a business that’s going to be to be able to do sales and commerce and customer support. And I think it will be similar for creators, although there will be more of a kind of just fun engaging part there. But a lot of creators are on the platform because they see this as a business too, whether they’re trying to sell concert tickets or products or whatever it is that their business goal is. And a lot of these folks either aren’t advertising as much as they could or in business the business messaging parts I think are still relatively under monetized compared to where they will be.
And I think a lot of that is because the cost of engaging with people in messaging is still very high, but AI should bring that down just dramatically for businesses and creators and I think that, that has the potential, that’s probably the — beyond just increasing engagement and increasing the quality of the ads. I think that that’s probably one of the nearer term opportunities even though that will — it’s not like a next quarter, the quarter after that scaling thing. But that’s not like a five year opportunity either. So I think that is one that I think is going to be pretty exciting to look at. But yeah I mean as Meta AI scales too, I think that that will have its own opportunities to monetize and we’ll build that out over time. But like I tried to emphasize, we’re in the phase of this where the main goal is getting many hundreds of millions or billions of people to use Meta AI as a core part of what they do.
That’s the kind of next goal building something that is super valuable. We think this has the potential to be at a very large scale and that’s sort of the next step on the journey.
Kenneth Dorell: Krista, we have time for one last question.
Operator: And that question comes from the line of Ron Josey from Citi. Please go ahead.
Ronald Josey: Great. Thanks for taking the question. Mark, I wanted to follow up on a prior question that you mentioned optimism has grown internally quite a bit just with all the improvements and investments and innovations you’re making. And we’re seeing that in the experience just for the few days of Meta AI. So can you just talk to us maybe how the 400 billion parameter model just might evolve the experience on Meta or how you think things might change over the next, call it, months, years, et cetera, as maybe messaging becomes a greater focus and things along those lines? So just a vision longer term. Thank you.
Mark Zuckerberg: Yeah. I mean, I think that the next phase for a lot of these things are handling more complex tasks and becoming more like agents rather than just chat bots, right? So when I say chat bot, what I mean is, you send it a message and it replies to your message, right? So it’s almost like almost a one to one correspondence. Whereas what an agent is going to do is you give it an intent or a goal, then it goes off and probably actually performs many queries on its own in the background in order to help accomplish your goal, whether that goal is researching something online or eventually finding the right thing that you’re looking to buy. There’s a lot of complexity and sort of different things that I think people don’t even realize that they will be able to ask computers to do for them.
And I think basically the larger models and then the more advanced future versions that will be smaller as well are just going to enable much more interesting interactions like that. I mean, if you think about this, I mean, even some of the business use cases that we talked about, you don’t really just want like a sales or customer support chat bot that can just respond to what you say. If you’re a business, you have a goal, right? You’re trying to support your customers well and you’re trying to position your products in a certain way and encourage people to buy certain things that map to their interests and would they be interested in. And that’s more of like a multi-turn interaction, right? So the type of business agent that you’re going to be able to enable with just a chat bot is going to be very naive compared to what we’re going to have in a year even.
But beyond that too is just the reasoning and planning abilities of these things grow to be able to just help guide people through the business process of engaging with whatever your goals are as a creator or a business. So I think that that’s going to be extremely powerful. And I think the opportunity is really big. So and on top of that, I think what we’ve shown now is that we have the ability to build leading models in our company. So I think it makes sense to go for it and we’re going to and I think it’s going to be a really good long-term investment. But I did just want to spell out on this call today the extent to which we’re focusing on this and investing in this for the long-term because that’s what we do.
Kenneth Dorell: Great. Thank you for joining us today. We appreciate your time and we look forward to speaking with you again soon.
Operator: This concludes today’s conference call. Thank you for your participation and you may now disconnect.
