Meta's AI Push Gets Boost With Key Hiring and New Business Unit
Meta Platforms (META, Financials) has made a significant move by appointing Clara Shih, the former chief executive of artificial intelligence at Salesforce (CRM, Financials), to lead its new artificial intelligence business tools division, as reported by Jefferies. 
Boosting Artificial Intelligence Development
This strategic hiring decision marks a pivotal moment in Meta's strategy to leverage artificial intelligence within its platform ecosystem. Clara Shih's expertise in leading the development of Agentforce at Salesforce, overseeing a vast user base of over 200 million businesses on platforms like WhatsApp, Instagram, and Facebook, positions her well to drive Meta's efforts in creating generative AI tools and agents, according to Jefferies.
Furthermore, Shih's existing knowledge of Meta's social environment and platforms is expected to facilitate a seamless transition and integration within the company. 
Expanding Market Reach
Meta has predominantly catered its AI software, including the Llama AI model, to corporate clients such as Amazon (AMZN, Financials) and Microsoft (MSFT, Financials). However, the recent developments indicate Meta's intention to broaden its AI capabilities beyond these partnerships.
Previously, Meta relied on external software providers to deliver AI solutions, such as the Llama model, to corporate customers. With the establishment of the new AI business tools division, Meta aims to directly engage with enterprise clients and capitalize on open-source AI advancements. 
Investment Outlook
Jefferies reaffirmed its "buy" rating for Meta with a price target of $675. Despite META shares trading at $561.75 in early market trading on Thursday, down slightly, the strategic hiring of Clara Shih and the launch of the AI business unit indicate a positive trajectory for Meta's AI initiatives.
