Meta’s Potential to Compete With Apple and Google in Device AI

Meta is positioned to be a major AI player thanks to its vast user base but faces challenges without owning an operating system.

The company’s 3.48 billion daily active users across Facebook, Instagram, and WhatsApp give it a massive data advantage. That data fuels Meta’s AI chatbot, Meta AI, which is integrated into its apps.

Clare Pleydell-Bouverie, co-head of the Global Innovation Team at Liontrust Asset Management, told CNBC:

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“It’s a battle right now in Big Tech to be the UI (user interface) for AI, and Meta actually has an extraordinary distribution advantage here, because they’re in the pocket of 3.48 billion users.”

“They already have our attention, and that is something that a lot of companies do not have.”

“We all know that proprietary data is one of the most important assets to own when it comes to creating an AI product or service, but not all data assets are created equal. Meta has the communication and social-media post data of 3.4 billion users. This is some of the most personal – and importantly – up-to-date forms of data on consumers that exists.”

“The key is that Meta’s platforms are increasingly where personal real-time data is stored and gets transacted.”

“The battle to be the UI for AI hinges on being able to deliver personalized AI.”

Meta has been pouring billions into AI infrastructure, data centers, and talent, and recently launched Meta Superintelligence Labs to lead AI efforts.

But experts warn Meta’s lack of a proprietary operating system limits it. Its apps run on Apple’s iOS and Google’s Android, platforms that have their own AI ambitions.

Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC:

“The problem Meta has is it does not own a platform like Microsoft or Apple does – it is a collection of apps that are hosted on others’ operating systems. As such, it is far easier for Google, Apple and Microsoft to push its AI tools to users in a way that Meta simply can’t.”

Ian Fogg, tech industry analyst at CCS Insight, added that OS-level integration is key for highly personalized AI experiences:

“The challenge in the consumer space that Meta has compared to Apple or Google is the idea of personal intelligence. This means that you need to understand the individual’s data information and tailor the AI to that.”

“If you’re on a device as part of an operating system, which is what Gemini is or whatever Apple does, you have a clear advantage there.”

Meta’s ongoing bet on the metaverse and its Reality Labs division also ties into a long-term strategy: creating a new platform or “operating system of the future” focused on agentic AI.

Pleydell-Bouverie sees this future OS breaking from today’s models:

“The OS of the future is essentially going to be the OS of agential AI, which bears no similarity to being the OS of traditional apps.”

But for now, Meta’s AI push hinges on leveraging its massive user data while working around its lack of a native OS. The battle for AI dominance is heating up — and Meta is far from out of the race.