contra
Meta has faced backlash for its Muse Image tool from Hollywood unions, talent agencies and cybersecurity firms over privacy concerns. Instagram’s implementation of the tool allowed users to create AI content based on images posted by public accounts, which are not notified when their posts are used for image generation, and users are automatically opted into the program. SAG-AFTRA, a major Hollywood union representing more than 160,000 actors and entertainment industry professionals, urged its members to opt out of the tool late Thursday, while talent agency Creative Arts Agency called for Meta to make the feature opt-in, not opt-out. Cybersecurity firm Malwarebytes warned the tool could be used for “impersonation, scams, or other abuse.” Meta, in response to criticism, said in a statement that users under 18 were automatically opted out and that it will “take action” against content that violates its community standards.
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what to watch for
Meta is expected to report quarterly earnings by the end of the month. The company is expected to report a nearly 7% boost in revenue quarter-to-quarter, but a 31% downturn in earnings per share, according to FactSet. Meta’s $10.44 earnings per share through its first quarter were boosted by a one-time $8 billion tax benefit.
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key background
Investors poured into Meta’s stock to open the year as shares briefly peaked in late January before stumbling to a low in March. That monthlong decline came as Meta was struck by a pair of landmark court rulings, one of which found Meta and Google liable for harming a woman’s mental health because of addictive design features on their platforms, and the brief closure of its metaverse. At the time, Meta also reportedly delayed the release of its AI model after it failed to outperform AI models from rivals OpenAI, Google and Anthropic in benchmark tests. The stock has since rebounded by more than 28% as Meta has ramped up production of its AI products, including Muse Spark and Muse Image.
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further reading
ForbesInstagram’s New AI Update Faces Blowback From Hollywood, Cybersecurity CompaniesBy Conor MurrayForbesMeta’s Rare Selloff Deepens After Court Losses, AI Delays And Metaverse’s DeclineBy Ty Roush