Yahoo News SNAP Expands Generative AI Capabilities With Dreams Feature
Snap Inc. SNAP has announced that it is expanding its generative artificial intelligence (AI) capabilities. Following the release of the AI-driven chatbot My AI, which can now provide visual responses via Snaps rather than just text, Snapchat is introducing a generative AI feature called Dreams.
With this feature, Snap aims to explore AI-generated images, possibly incorporating users and their friends in creative backgrounds.
Dreams is a feature that employs AI-generated selfies to position images of users in creative settings and situations. Similar to other AI-powered selfie applications, Snapchat requires well-defined selfies for effective usage, excluding images with obscured features or multiple people. The app will guide users on obtaining clear shots from various angles, expressions and lighting conditions to enhance the quality of AI-generated photos.
Snapchat is also creating a feature called Dreams with Friends, allowing users to grant their friends the ability to create AI dream images that include both individuals. This new feature is expected to boost the Daily Active Users (DAUs) in the upcoming quarter.
The Zacks Consensus Estimate for SNAP’s third-quarter 2023 DAUs globally is pegged at 406.59 million, indicating year-over-year growth of 12%.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snapchat's Recent Improvements in AI to Counter Competitive Challenges
Snapchat’s recent AI efforts are expected to counter large competitors like Amazon AMZN, Microsoft MSFT and Google GOOGL.
Amazon aims to leverage its status as the leading cloud provider in terms of revenues to provide businesses with a wider selection of AI models compared with rivals. Amazon has introduced Amazon Web Services Healthscribe to create applications for transcribing and evaluating discussions between medical professionals and patients. In addition, Amazon has also introduced an AI-generated novel feature called Customer Review Highlights.
Google has acquired DeepMind, a London-based research lab, with Brain, GOOGL’s own artificial intelligence team in Silicon Valley. The merged teams are actively experimenting with innovative tools that could transform generative AI, the technology supporting chatbots, such as OpenAI's ChatGPT and Google's Bard, into personalized life coaches. Google and DeepMind are working on generative AI to tackle more than 21 diverse categories of personal and work-related tasks.
Microsoft intends to introduce a fresh iteration of Databricks software to aid customers in creating AI applications for their enterprises. This platform assists businesses in developing AI models either from the ground up or by repurposing open-source models, delivering an alternative to acquire licenses for proprietary models from OpenAI. This will disrupt the AI market and have a negative impact on all of its competitors.
Snapchat is utilizing insights gathered from interactions with its chatbot to enhance its advertising operations, which constitute the majority of the company’s revenues. Snap has faced challenges with its advertising in the recent past. My AI chatbot was made accessible to all Snapchat users in the previous quarter, leading to a surge in messages that could potentially aid Snap in enhancing ad personalization techniques.
Shares of this Zacks Rank #3 (Hold) company have gained 4.6% in the past year compared with the Zacks Computer and Technology sector’s rise of 32.4% in the same period due to weak revenues reported in the previous quarter. SNAP’s recent AI efforts are expected to boost its top line in the upcoming quarters.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SNAP’s revenues in 2023 is pegged at $4.5 billion, indicating a year-over-year decline of 2.16%.
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