Meta Plans to Extend Business AI Chat Tools to Third-Party Websites

Meta Platforms Inc. (META) is intensifying its efforts to diversify beyond its core online advertising business, venturing further into the realm of artificial intelligence with a focus on providing businesses with AI-powered customer engagement solutions.

The social media giant recently unveiled Business AI, a digital assistant platform designed to enable companies to offer personalized product recommendations and facilitate faster purchase pathways through conversational interactions. This initiative allows online retailers to deploy Business AI across Meta’s suite of platforms, including Facebook and Instagram, as well as on their own websites, particularly those utilizing Shopify’s e-commerce infrastructure.

Meta’s foray into enterprise-focused AI reflects a broader strategic imperative to capitalize on the transformative potential of generative AI, an area where CEO Mark Zuckerberg has committed substantial investments. This move aligns with a growing trend in the tech industry, where companies are developing advanced AI agents to streamline and automate a range of tasks.

Notably, Amazon.com Inc. (AMZN) introduced its own AI agent in September, specifically targeting third-party merchants seeking to enhance their online business operations.

“We are moving beyond traditional advertising and our own platforms to empower businesses with the tools to create impactful customer experiences and optimize their operational processes,” stated Clara Shih, Meta’s Head of Business AI, during a recent press briefing.

According to Shih, Business AI will be available to companies as a free add-on to their Meta ad campaigns, enabling customers to engage with Facebook and Instagram ads by asking product-related questions and making purchases more efficiently through AI-driven interactions. For companies that wish to integrate Meta Business AI into their own websites, a pricing structure, described by Shih as competitive with “market alternatives,” will be implemented.

“We believe this new AI product category has the potential to significantly enhance the effectiveness of our advertising solutions,” Shih emphasized.

Business AI is also poised to launch on WhatsApp and Messenger later this month in Mexico and the Philippines, with plans for further global expansion to follow, according to Shih.

The synergy between Business AI across Meta’s platforms and retailer websites is expected to provide a more cohesive and personalized customer experience, enabling the AI to deliver more relevant and insightful responses to product inquiries.

Meta is forging strategic partnerships with companies such as Salesforce.com Inc. (CRM), Microsoft Corp. (MSFT), ServiceNow Inc. (NOW), and Zendesk to integrate their customer relationship management (CRM) and chatbot capabilities into its Business AI ecosystem. These partnerships could give Meta Business AI access to a broader range of CRM functionalities such as lead generation, follow-up sequence, and automated ticketing.

“A helpful way to think about how Business AI will work in conjunction with third-party chat applications is to imagine a customer asking a salesperson about warranty information or requesting a return,” Shih explained. “In such scenarios, the salesperson would typically direct the customer to the customer service desk for specialized assistance.”

In a related move, Meta previously acquired enterprise CRM startup Kustomer in 2020 for $1 billion, but subsequently spun it out as an independent entity in 2023 as part of the company’s broader restructuring efforts.

The company also launched Meta AI business assistant, designed to provide advertisers with support for account-related issues and insights into the performance of their ad campaigns. This tool is poised to become to go-to solution for advertisers, helping them get the most return on their ad spending through Meta’s advertising network.