Clara Shih to Head Meta's AI-Powered Tools for Businesses

Meta Hires Salesforce's CEO Of AI Clara Shih 11/22/2024

Meta is launching a new product group focused on developing AI-powered tools for businesses and has selected Salesforce’s former CEO of AI, Clara Shih, to lead it. Shih, who has served as CEO of Salesforce AI since March 2023, will be responsible for developing and monetizing AI tools that Meta is specifically building for businesses, such as the business AI chatbot Meta launched on Facebook in September, which automatically offers users information on products and services.

These business-to-business AI products will be created using Meta’s large language model, Llama -- and due to the company’s ad-focused business model, may likely involve automated ad tools.

Clara Shih's Vision

In a LinkedIn post announcing her new position at Meta, Shih said the product group’s vision is to make “cutting-edge AI accessible to every business.” Shih’s words build on a statement obtained from Meta’s head of monetization John Hegeman, which said that the company believes that “these latest advancements in AI represent a significant opportunity for businesses to drive more efficiencies” and “improve the experience they offer their customers.”

Shih also mentioned in her post that Reality Labs--– Meta’s bifurcated division dedicated to AI-powered wearables and metaverse creations -- will help bring the company’s recent AI advancements into the physical world through AR glasses and VR headsets.

While Meta’s AI technologies have boosted brands’ ad spend, Reality Labs is still hemorrhaging money, expecting operating losses to “increase meaningfully year-over-year” and increasing the company’s total costs and expenses, ultimately worrying investors.

Future Direction

A division using AI technologies focuses on a more practical goal -- business-to-business product development -- may take more pressure off of growing Reality Labs costs as it looks to provide Meta with an additional revenue driver.

Salesforce AI executive Adam Evans will take over Shih’s role overseeing the company’s AI efforts after she leaves.