Big Tech doesn't get to have fun anymore

Hiya, it’s Alex in Los Angeles. At the cusp of a new, AI-driven era, big tech companies are stuck in the no-fun zone. But first...Three thin [View in browser]( [Bloomberg]( Hiya, it’s Alex in Los Angeles. At the cusp of a new, AI-driven era, big tech companies are stuck in the no-fun zone. But first... Three things you need to know today: • Meta will ignore its [ethics board’s advice on drugs]( • OpenAI has a [new team to address AI risk]( • Amazon beat [estimates for revenue and profit]( Innovation versus profit [Artificial intelligence](bbg://screens/NI%20AI) caught the imagination of the general public so swiftly with the help of generative AI chatbots. But when it comes to the biggest companies working on bringing the technology to the most people, let’s be real: They’re not really trying to delight us. They’re trying to monetize us. That was made clear this week in the earnings reports from [Meta Platforms Inc.](bbg://securities/meta), [Alphabet Inc.](bbg://securities/googl) and [Snap Inc.](bbg://securities/snap)— three of the biggest consumer-facing companies jockeying for leadership in artificial intelligence consumer tools. All three are under pressure from investors to boost their [digital advertising](businesses, the divisions that fund AI development. They’ve all fired thousands of employees and cut non-revenue generating projects. When it comes to future tech like AI, the conversation quickly pivots to convincing Wall Street that the investment is worth its money-making potential. Comments from executives are laced in language that broadcasts to investors that they’re building AI with the bottom line in mind, and the future of the technology is shaping up to be an industrywide tug-of-war between short-term share value and long-term innovation. “We recognize that we have to earn the ability to invest in all of those things by [delivering]( consolidated operating income growth over time,” Meta Chief Financial Officer [Susan Li](bbg://people/profile/20553956)said Wednesday. The companies would argue that the ways they’re using artificial intelligence are meant to be engaging, persuading users to spend more time on their apps. But engagement isn’t the finish line for these businesses; making money from that additional time spent is. It’s a different stance than saying they’ll build something great and figure out how to monetize it later – which is what Meta Chief Executive Officer [Mark Zuckerberg](bbg://people/profile/15103277) always used to say. “Of course, whenever there is more engagement in the apps, that creates the opportunity for more monetization, so there's that,” Zuckerberg said Wednesday, discussing the company’s AI chatbots. Read More: [The Tech Behind Those Amazing, Flawed New Chatbots]( That’s left us with features that largely aren’t introducing brand new activities for the normal person. Instead, they’re focused on making existing activities more efficient and productive. The advent of social media got us connecting in ways and with people we couldn’t imagine, while the sharing economy gave a reason to get into cars with strangers or sleep in foreign houses. AI chatbots, like the ones from Meta and Snap, or the AI infused into Alphabet’s Google search, accomplish something we all are pretty used to: Ask a computer a question and it gets you an answer. Granted, these answers can be arguably better, more nuanced, in plain language, or via a computer on your glasses. The technology powering it is complex, powerful and expensive, but it feels more like an improvement on a utility than something that’ll change your day-to-day life. The biggest near-term opportunity for AI is making workers more productive and efficient, the companies said while discussing their earnings reports this week. Businesses can create AI chatbots to more quickly respond to messages than a human can. Creative advertising can be produced quicker with AI image and copy generators. Ads can be targeted at people who are more likely to buy or click something. The experience of users changes minimally, but their value to technology platforms go up. And the tech giants make money in the end. Sure, it’s very early in the artificial intelligence era, but the guiding principles for what kind of AI gets produced are being decided. For big tech, No. 1 seems to be how swiftly it can boost revenue. That’s pandering to an audience — stockholders — whose top priority isn’t innovation, but increasing the value of their investment. If shareholders are the most important stakeholders, it’s up to the companies’ leadership teams to inspire trust that building something cool is worth it. For now, imagination seems to be in short supply. —[Alex Barinka](mailto:abarinka2@bloomberg.net) The big story The antitrust case against Google hinges on app design, in particular [four taps and a swipe on an iPhone](, which is what it takes to switch search engines. Get fully charged Israel is using spyware, including the controversial Pegasus, to [track hostages in the Gaza Strip](. Comcast shares fell after it reported a [loss in broadband and cable-TV subscribers]( but reported growth in revenue. UK’s financial watchdog is considering using AI to [monitor bank transactions](. More from Bloomberg Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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