SPEAKER_01 0:00

Meta just launched Muse Spark, which is a brand new AI model uh built by its internal super intelligent labs team. And this is going to uh rock the marketing world, I believe, as well as the consumer world.

SPEAKER_00 0:16

And it seems the AI world.

SPEAKER_01 0:17

And the freaking AI world. Yeah. So this is really exciting. Actually, yesterday I'm sitting in my office. It's the afternoon, and I get a text from one of my good friends at Meta who has the scoop. And they texted me and they text me an article, which we're gonna include the articles below. So these are public articles. And they said it's not going to affect ads, but pay attention to the shopping mode that's that's about to happen. And so in this episode, we're gonna talk about something that Meta just launched on April 8th called Muse Spark, which is a new model that they built into their AI of meta AI that is in over three billion daily users apps right now across all meta platforms, that is going to it replaces what was what was called Llama, which was their flagship model, and they built it completely from scratch, the architecture and everything. And this is really, really crazy. And so I had this friend, they shot me the text, and I started deep diving into these, and we're gonna link it, I think, two or three articles. I found two so far. And so basically, I'm gonna give you the rundown. Meta is I I kind of sent them back. What did I send them? I texted them and I said, Meta has entered the arena. Because it took forever. Like you have you have Chat GPT and Gemini and Claude as the you know the core ones.

SPEAKER_00 1:40

Um they tried with Llama, which I don't think anyone even knew Llama existed.

SPEAKER_01 1:45

No.

SPEAKER_00 1:45

Because it was so bad. But uh yeah, I think this is gonna be crazy. I'm just looking at some of the benchmarks they put out. It's pretty crazy.

SPEAKER_01 1:52

Yeah, so you can go to meta.ai. AI.meta.com. Well, you can go to AI.ai, I believe, goes to the tool. Oh, I see. Yeah, and it was like glitching out when I was trying to access it, probably because everybody was when the article dropped. But here's what is crazy. So that in the article that that that we're gonna link below, meta's benchmarking their new AI model for on all kinds of different different fronts against like clawed models, Gemini models, Chat GPT's models, and so forth within there. So it's benchmarking it and what it's gonna be capable of. Now, up to date, I've actually been shocked that Meta has not had an actual chat bot or one that was even worthwhile at all. We started to see meta AI kind of trickling in, right? You see it on articles, you see it on posts where it's like based on the comments, it starts deducing what the people are talking about and what questions you might have. And you could start a little chat with meta AI, but not a lot of people are really using it. I don't know anyone who's like, oh yeah, I just go talk to Meta AI. Nah. So this has been the big this is this is where things are gonna start to change, I believe. And how this is gonna impact e-commerce and just business, uh, I think is gonna be really, really cool uh and scary at the same time. So MuseSpark is the brand new AI model, and actually they were they brought in, it was like $14 billion. They brought in this big guy, big guy named like Alexander Wang to run it. This was like a big, I mean, to $14 billion to bring in somebody to run. I think he's like his name is like head of AI or something like that into the company whose entire job is to compete with all of these other platforms. And he comes in and they start building this in the meta superintelligence labs or MSL. And what was crazy here, and this is the really cool meta AI now has shopping mode rolling out inside of Instagram and Facebook. This is the crazy part. So basically, what will happen is people will be able to ask Meta or ask the AI, uh, they could ask it shopping questions, and it will just pool product recommendations based on creative content and brand posts and reels and community discussions that are already being had on the platform. And in Meta's own blog, by the way, we're gonna link below, it actually says that it's gonna get richer over time, which makes sense, right? It's just gonna fuel more data. And what's really crazy about this is I mean, I think it has some really good things, there are things that my brain goes to that I'm really excited about here, and things that I'm like, ooh, I don't know how I feel about that. Let me share with you the exciting things. Now, by the way, what I'm about to say are predictions and what I see potentially happening. Meta has meta vibe. Are you on vibes? They have high or whatever.

SPEAKER_00 4:30

Yeah, the the glasses that I have tie into vibes.

SPEAKER_01 4:34

Yeah, so like they have that, and you're seeing a much bigger push in it right now. Actually, after they announced this article yesterday, suddenly I'm seeing all AI force things in my notifications. I'm seeing it in Facebook, I'm seeing it in Instagram. Like I started seeing it yesterday after they announced this. I'm like, oh, they're really doing the big push to get people using this. Yeah, and it's coming, right? If Meta wants to do it, they will do it. They have freaking a third or half the entire world on their on their different apps. And and so because they have that, I think they have this crazy advantage. I mean, it'd be crazy if they didn't enter the arena. But what's cool about this, here's what gets my uh brain tickled in a really good way. What happens when there are a billion people using the chat feature in talking to Meta's new AI? And we are advertisers, and they have the most robust established ad platform like on the planet. Like, yeah, Google's over there, but it's not like meta. Like Meta is a whole different level. And what happens when we get a placement of uh meta chat?

SPEAKER_00 5:35

Or not even not even a placement, but also like that will fuel targeting because meta will start to know when when people are logged in using that tool, searching for this or talking about this or whatever, that becomes like essentially. Imagine if your Google, like Google searches could plug into Meta currently when people just go and Google when when they want something. This would basically be that where people could go to Meta and ask it the chatbot something, which then directly links to their account and fuels ad targeting on platform.

SPEAKER_01 6:11

This is why I as soon as OpenAI said that they're doing preliminary ad testing, I'm like, oh yeah, on Chat GPT, I'm like, oh yes, I can't wait. It's gonna be the wild west. I'm gonna just go in there on my horse and my lasso. I'm like, let's freaking do this. I don't even know how we're gonna do this. And I'm so excited because the contextual depth of knowledge that AI has on everybody who uses it every day is scary, number one. Freaking scary. But number two, opportunity galore. Like, wow, if you could live it knows the context of what they're searching for. It's not like a keyword, it's like, hey, I'm looking to do this thing on this date, and this is the situation and whatever. The contextual richness that that Chat GPT and Claude have is really, really crazy. Now, obviously, Meta has a lot of that too. But now it's going to enhance. If people begin using and adopting this, which I believe the general consumers, this makes a lot of sense. I don't think general people are gonna be on like Claude, like we are. That's like the business. We've talked, like that's like the business platform, right? But Meta AI, that makes a lot of sense. Having the chat where you're just like, I'm already in these apps every single sinking day. I might as well get everything I could get over on these other platforms for free inside of Meta.

SPEAKER_00 7:21

Yeah, it's I mean, even Snapchat tried to do this. I know I'm not on Snapchat. I know you're not on Snapchat, but I've seen on Snapchat, for some reason, Snapchat has an AI bot on there, you know, with all your friends lists, you can go and ask it questions. I'm like, why would anyone use the Snapchat AI bot? But it's just convenience of being able to be on the app that you're already using, you're already in every day. And oh, I need to, you know, look something up. I can just do it through Snapchat or do it through Meta or do it through Instagram. But I think people are probably on not only people are on meta and Instagram more, but more people are on meta and Instagram than Snapchat. So I think it's gonna just be crazy.

SPEAKER_01 8:01

Yeah, I mean, like what's what's really neat is like if you think about it, all of our campaigns are just gonna get a lot smarter, right? Because if more people adopt and begin using this, the input data from all these conversations from billions of people using Meta AI monthly is every shopping conversation that they have, right? Is gonna generate signal to our ads. And if we're able to run ads to this as a placement, which I have some thoughts on. There are some scary things that I'm like, uh, I don't know how I feel about that. But the ad side, I'm a little excited about that. Like, heck yeah, we've been waiting for ChatGPT and we can't even do that yet. But we're already on meta, we're already in the ecosystem. Can we run ads? I don't know. That would be amazing if we could. So that's what's really exciting to me. Uh, the contextual depth and the ability to target that as a placement is really, really exciting. Uh, but there are some things that kind of uh kept me up last night thinking about. Number one, this is this is what you might call like the mall landlord problem. This is where like Meta already controls your storefront, uh, your ads, and the foot traffic, which is the algorithm, and you have the create, it controls who goes to your website already. It controls all of that. Now it's gonna control the shopping assistant that's guiding people to actually purchase products. And then every so basically they're and and they're gonna be able, I believe, let me go through some of the notes that I had here. I believe they're going to be able to literally buy on platform where they're there they don't need to leave. And I know OpenAI was doing this as well to where you don't have to leave. And I can't remember if they said they were doing that or if it was gonna integrate with like eventually it would obviously integrate with Shopify, which makes a lot of sense, right?

SPEAKER_00 9:40

And it makes sense because they were pushing their own like on-platform checkout for ads for the longest time, which didn't do super well. But that's pretty much killed it. Yeah, but that may have been the initial test of checking out on platform and building trust in that checkout platform.

SPEAKER_01 9:58

Well, and I'm gonna even go further to say I bel I believe I bel the reason I believe it's all gonna be on platform checkout is because I don't know if you've seen this. They're now trying to get people to use shop again. Have you seen that? We literally have a MetaShop? Yeah. I've actually seen an uptick. We have a $2,000 credit. They're like, hey, here's $2,000 to run ads to your MetaShop. I'm like, what? We sell digital products. Like, why? That's also true. Which is funny, right? But like we're getting credits. Clients are starting to get credits, I'm like, oh, they they're they're reviving it, but they're gonna revive it in this way that people can actually the chat makes so much sense. It's so contextually rich that it's gonna allow them to do it. So I actually believe that transactions are gonna begin to happen on there. But the problem is with like any landlord, is they start to raise the rent when everything is through there. I mean, you just kind of see this. A lot of softwares have even moved to like percentages of revenue, or their bill their their pricing is based on what your revenue or ad spend is or whatever that is. And so it's it's like a metered-based pricing, and they take a cut of the pie. Uh, one of the tools that we use doesn't like Hyros Air, are they they take like 1% or something like that?

SPEAKER_00 11:04

They Hyros tracks what revenue comes in from a certain thing of the tool and then takes a percentage of that revenue that comes in from it.

SPEAKER_01 11:11

Yeah. So this is where like, okay, well, you're all in their ecosystem and they're taking transactions and stuff. Well, you know what? We're gonna attack a half a percent on all of the sales that go through here. So I think that there's like that mall landlord problem where they're you're just one of the stores in the mall and you're just like everybody's there, and they're like, well, we have all the foot traffic, we have all the people here, they're shopping between everybody, they're all in our building. Your rent goes up, you can't really do a whole lot because you can't afford to move out on your own.

SPEAKER_00 11:33

Yeah. You can't go build a building, sorry. You can't go build your own AI platform.

SPEAKER_01 11:38

Yeah, and so I I also think I think the second thing that I think about is like the whole, the whole thing, we've already seen this movie situation. Like with Facebook pages, they're like organic, organic, organic, and then everyone's on Facebook pages and we're all posting, and they're like, they're crazy on organic. Like, all right, now that everybody's using this, uh organic reach is like 1%. And if you want to have any degree of reach, you have to pay us. Yeah. So I think that I think there's the the whole possibility of hey, everybody get on this. We're gonna fit, we're gonna explain more of how it works. You're gonna like optimize all of your product descriptions and everything to just get them in here, and then everything is optimized to really fuel the or like fuel the performance on there. Or maybe there's a maybe there's a big organic aspect to it. So what happens is maybe they roll out something where it's like if you do these things, it fuels you organically in the chats where you don't have to pay. And so everybody's doing these things, and then suddenly they're like, all right, now you have to pay for the chat. So that's something I kind of think about. Uh, I think the next thing, the third thing to me is like, it's a little scary is is the black box just gets deeper. AI is already a stinging black box. Like, we don't have knowledge on a whole lot of stuff.

SPEAKER_00 12:48

Honestly, the people that make AI probably don't have a lot of knowledge on this stuff.

SPEAKER_01 12:52

It's moving so stinging fast. And it's like, like, even on any current AI, you can't see where do I show up? How often do I show up? What does it say about me? You you don't know that because like the AI is literally creating that in live time. I don't know if they'll be able to I'm sure they could figure out a way. AI can figure out a way to tell you how AI is maybe doing something. I don't know. But it's like, okay, well, now you have AI meta AI recommendations. You don't know, am I showing up in these? Is it a cost per click basis thing? How does this work? So I think the black box just kind of enhances. And it's just more of like the whole, the whole, like, hey, just trust us. Uh-huh. We know. Yeah. Which meta does freaking know. They have a lot of stuff. Like targeting, they're like, hey, just go abroad. And we're like, no, no, interest, control, control, control. They're like, let loose trust in the meta. Yeah. And then now we're all like, all right, we kind of trust in meta until like things go haywire.

SPEAKER_00 13:43

Yeah, that's true. It it actually reminds me of uh you guys have probably heard this. I don't I assume you've probably heard this too, Josh, but Mark Zuckerberg has gone out and said, uh, this was back in like 2025. He said that his goal is to replace media buyers as as we know it currently, in favor of artificial intelligence, and you know, basically give us your stuff and we'll do something with it, basically, is what Meta wants to build. And I see this as a huge push towards that. They I mean Meta just acquired Manus uh and integrated Mana's into the ads manager, and Mass now has the most power when it comes to, well, at least it did, probably this will become the next one. But I mean, this is where Meta's moving, and I think it's going to be really, really powerful for people that are okay to do the ebb and flow of figuring out the next thing. I think the people that are really gonna be hurt by it are the traditional media buyers that are not moving with with everyone right now and trusting meta and and and all of that, because I think this is going to become you're gonna need to have a lot of trust in the platform for this to work.

SPEAKER_01 14:56

Yeah, yeah. Yeah, no, that that that's really good. I I think the fourth thing for me is you just had like this this erosion of like brand control. Like if you're being if you're being cited and recommended or not recommended, and you you have no control over do you show up next to a competitor, what does that look like? What does it say about you? Can you even control, can you pay to change what it's gonna say about you when it pops up? I think those are types of things that are uh kind of interesting, like especially if it's all on platform and they can't see your brand colors, they can't get tied to it other than I just place the order and that's it. I mean, this is ultimately to me, it's so smart. What's the next thing? Uh fulfillment by Meta. You know what I mean? Like literally, it's Amazon is a marketplace. You go search for the thing, you buy the thing, and then you have FBA, and they fulfill by Amazon. Yeah. Like, well, if they're all checking out on platform and anything, the the next move, Meta, for more world domination, can you just like Can you ship my stuff out too for a yeah? Can you just ship out or can I just make you my my 3PL essentially?

SPEAKER_00 15:56

I just ordered something off of an e-commerce site and it came like the tracking number was Amazon and like it was a comp it was completely Amazon experience. And that would be crazy if Meta did something like that. Yeah. And it's just like, here, Meta, just run my business, except for the But Meta's gonna one up Amazon.

SPEAKER_01 16:12

They're gonna come and be like, oh, we do two-hour shipping everywhere. That would be not two days. Like we're two hours shipping.

SPEAKER_00 16:17

Amazon's already pretty far ahead, but Amazon has basically got some cash.

SPEAKER_01 16:22

So that's the fourth thing to me that's kind of like, ugh, I don't know how this is really gonna play out. Maybe a little maybe that's a little question mark, a little like a little fear there. Uh the the fifth thing is that the fifth thing is that what the heck happens to all what the heck happens to all of my email lists in the database that I built? You know, so like if I build all of this and we start moving toward this route. Now I don't believe, by the way, this is like the I'm being the conspiracy theorist here. It's fun to be the conspiracy theorist sometimes. Like if everything moves to on platforms, it already is on Amazon, right? And Amazon is very captive.

SPEAKER_00 16:58

And they won't share anything. They're more of a black box than anyone.

SPEAKER_01 17:01

Yeah, well, you're not allowed to have the customer data, they control that. So if they're checking out on Meta, will you control that data if they're placing all the orders there? Well, you have to obviously ship it out to them right now, but if they did fulfillment, then maybe that would block the orders from maybe feeding through to us. So I so I think that there's obviously logistical reasons why you would still technically have access. But if people aren't going there uh to your website, are you're not having a welcome pop-up, they're not getting captured in that, you're not getting their SMS, but is that a bad thing? Because if the recommendations are more contextually relevant and they're more buyer intent, will the offset of purchases be so great that you're like, I don't even care about welcome offers. I don't need to do any offers because this is getting people that are literally ready to buy right now. Yeah, like I'm not doing this top-of-funnel ad thing to try to like bring people to awareness of the problem and to the solution and to the product. It's like, no, no, no, no. These are people that have been going back and forth with AI, and then you were just the bottom of the funnel answer that got them to buy. Like, that's just crazy to me to think about. It's like, what if email wasn't the thing anymore? And it's literally just like, nope, you just have to have the opportunity, is you need to have a really good product or catalog set up. I'm sure there's gonna be some technicalities to that, like your product, the images, how it's built out, how the FAQs on the product. Wouldn't it be crazy if like, okay, now our websites don't even matter to like front-facing. It's literally our websites are just like technical books about every product to fuel AI chats so that that way they're sourcing the proper stuff. It's kind of weird to think about that if that would ever become a reality. But those are all the questions. I think the biggest the biggest thing to me is like, I'm very excited about it. Number one, especially if they're gonna open up a paid channel of this and we can get high-intend people. Uh, but number two, it does qu it does make me question what happens to brand, the brand as a whole when everything is on platform, if they continue to do checkout and shopping mode on platform. Uh, as with anything though, I think that there's upsides, there's downsides, there's risks, there's opportunities. And technology so far, as it has continued to advance, has only presented more opportunity in my my perspective for businesses. So, hey Meta, pretty cool. Great job dropping this. I think this is really neat. It's gonna be unique to see what happens here. And I'm I'm really excited, honestly, to see. I just love tech. We're like tech nerds. So, like anytime this stuff happens, we're like, oh, this is so cool. But then the conspiracy side, what might happen if this were to happen? And I would just say, overall, I'm excited, pretty cool. We're gonna include some articles below. If you want to go check it out, this is just our little like a hot take on like what we think is good, what we think is maybe bad, uh, what might be coming as a result of it. But yeah, Meta AI is really entering the LLM arena to compete with the other people, but there's they have a lot more wind in their sales as far as it goes with advertising. So I know Claude said they're not gonna introduce advertising. Open AI is trialing it, and Meta's like, guys, we've been doing this for a long time. We'll see you later. They're gonna be light years ahead. So yeah, all that to say, I hope you found this episode enjoyable. If you did, please give it a give it a thumbs up on YouTube if you're watching, or please rate the podcast. It would mean a lot to us, and it would help you get into the hands of other e com founders. We appreciate you, and we'll see you in the next episode.