While many tech companies are pushing the professional usefulness of artificial intelligence (AI), social-media company Snapchat has a more lighthearted version of generative AI.
- The new tool, dubbed “My AI,” features a customizable name and avatar that users design to their liking.
- Rather than a productivity tool or search engine, My AI is a more personal version of ChatGPT technology.
- “My AI can recommend birthday gift ideas for your BFF, plan a hiking trip for a long weekend, suggest a recipe for dinner, or even write a haiku about cheese for your cheddar-obsessed pal. Make My AI your own by giving it a name and customizing the wallpaper for your Chat,” Snapchat says in its press release.
- Only Snapchat premium users will have access to My AI. Snapchat premium is available for $3.99 per month.
Why it’s news
Snapchat’s version of AI could allow the company to draw in new users. Though the social-media company has around 750 million active users monthly, Snapchat’s earnings have decreased in recent months as ad revenue declined.
My AI is currently only available to premium Snapchat users, which could incentivize more users to sign up for the program. Eventually, the company plans to offer the AI to a broader audience, The Verge reports.
What’s not being said
As with most AI programs, there is some concern about the safety of AI. This worry could be more prominent for Snapchat users as Snapchat’s users tend to skew younger—the 15-to-25 age range.
Snapchat addressed this concern with a lighthearted message in its press release: “As with all AI-powered chatbots, My AI is prone to hallucination and can be tricked into saying just about anything. Please be aware of its many deficiencies, and sorry in advance!”
The press release also warned users to avoid sharing personal information with the AI and added that while it was programmed to “avoid biased, incorrect, harmful, or misleading information,” it was not foolproof.
Backing up a bit
Snap’s shares plummeted after the company announced lower-than-expected revenue during the final quarter of 2022.
The Snapchat parent company’s shares fell 10.3% on Wednesday—the most significant decline that day of any company with more than $10 billion in market capitalization. Stocks declined after the company reported $1.3 billion in revenue at the end of 2022, below the previous estimate.
The company also said in a letter to its investors that it anticipated a continued revenue decline of 2% to 10% during the first quarter of the year. Over the last several years, the social-media company has struggled to compete with rivals like TikTok, Meta Platforms, and Alphabet.
After the earnings release, UBS analysts downgraded Snap’s rating from a buy to a neutral level, Forbes reports. While Snap declined, the rest of the market generally gained after positive updates from the Federal Reserve encouraged investors.