CNBC’s Julia Boorstin joins 'The Exchange' to discuss Meta's AI upside and marco headwinds as the company eyes AI-powered ad growth.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Meta is focusing on artificial intelligence to strengthen its advertising operations, using AI to improve ad creation, targeting, and measurement. While the company faces macroeconomic uncertainties that could affect overall ad spending, analysts suggest Meta is well positioned to benefit from the shift toward AI-driven advertising.

Recent data shows Meta's shares have risen significantly since it began prioritizing AI integration across its products. The company has also invested in AI chatbots, which now have over a billion monthly active users, further driving engagement and ad impressions. Industry forecasts predict that AI and hyper-personalized ads will account for a growing share of digital ad revenue in the coming years.

Meta eyes AI-powered ad growth

All right, let's stay on the story. AI is, Mark just said, a key driver of ads for Meta, but at the same time, macro uncertainty could become a major overhang. Julia Borstin is looking at the balancing act for Meta as part of today's tech check. Well, Meta shares aren't moving on Zuckerberg's new missive that he posted today on the personal superintelligence tools they're building, as the market is awaiting earnings from Meta and also awaiting some new insight into the ad market. Meta and the other platforms are benefiting from AI improving ad creation, ad targeting and ad measurement, but they're also facing economic uncertainty. Now, Google's earnings last week beat expectations, bolstered by YouTube's 13 percent ad growth, with bullish expectations for Meta along with Amazon, Roku and Reddit. Those companies report results tomorrow. Now, PWC forecasting AI and hyper personalized ads will drive digital advertising from 72 percent of overall ad revenue last year to 80 percent in 2029. But at the same time, ad giant WPP revised down its global ad forecast for the year from nearly 8 percent to 6 percent growth amid auto and retail advertisers decreasing their ad spend due to those tariffs. In this balance of risk and opportunity, Bank of America writes that Meta is, quote, best positioned company to benefit from AI driven advertising share gains and upside. We think Meta's investments can drive product driven advertising upside and weighing in on Meta's investments. Citizens writing, quote, AI makes Meta's content more engaging, creating more ad impressions and making its ads more relevant, increasing click through rates and conversions. Now, Meta's spending on AI and its long and short term impact of that spending will certainly be in focus when the company reports this afternoon. Is this a pivot from Mark Zuckerberg, Julia Boorstin? No, I would say Mark Zuckerberg started pivoting into AI back in February of 2023. So that was two and a half years ago. And that's when Zuckerberg talked about how they were going to go big in AI. They were going to be working to integrate AI across the different products that Meta offers. Now, what we've seen since then in the past two and a half years is first, Meta shares are up about 115 percent in the past two years, up about 50 percent over the past year. What we've seen since then is that Meta has really infused AI across its ad portfolio. What that means is they're using AI to make it easier to create ads inexpensively and then to better target and measure the impact of those ads. So what we've heard across the past two years, effectively, of conference calls with the company is that advertising is really improving. Advertising is their bread and butter and it is improving because of AI. Separately, we've seen Meta invest in all these AI chatbots. They unveiled their first chatbots nearly two years ago at a conference in the fall of 2023. And since then, they've been really driving engagement with their Meta AI chatbots. They have over a billion monthly active users now for those chatbots. What they're doing with those chatbots is they're trying to drive engagement. Of course, the more time people spend on the platforms, the more ads they see. So financially, this is still an ad-supported company, but they're really using AI as a driver of that. Amazing to watch. Julia Boorstin, appreciate it. Thank you very much.

President Donald Trump said on Wednesday the U.S. will charge a 15% tariff on imports from South Korea as part of a deal that eases, for now, tension with a top-10 trading partner and key Asian ally.

Washington

Global Tariffs

Trump says U.S. will set 15% tariff on South Korean imports

U.S. President Donald Trump slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

Rio de Janeiro

Trump hits Brazil with tariffs, sanctions but key sectors excluded

Widespread damage from tsunami waves after one of the strongest earthquakes ever recorded appears to have been largely avoided. Experts say this event should be used to gauge disaster preparedness for a more serious situation in the future.

Okinawa

Tsunami damage less severe than feared after Russian earthquake

Prime Minister Mark Carney announced that Canada will recognize a Palestinian state later this year if the Palestinian Authority, which governs parts of the West Bank, meets certain conditions.

Ottawa

Middle East Conflict

Canada to recognize Palestinian state in September if conditions met

Australia said on Wednesday (July 30) it will add YouTube to sites covered by its world-first ban on social media for teenagers, reversing an earlier decision to exempt the Alphabet-owned video-sharing site and potentially setting up a legal challenge.

Canberra

Australia expands teen social media ban to YouTube

President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

Trump says U.S. to hit India with 25% tariff starting August 1

Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

Ozzy Osbourne fans flood Birmingham streets to mourn late music icon

U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

Trump says Epstein 'stole' young women from Mar-a-Lago spa

Owdeh Hathaleen, a 31-year‑old Palestinian activist, teacher, and filmmaker behind the Oscar-winning documentary No Other Land, was shot dead by an Israeli settler near the village of Umm al‑Khair in the South Hebron Hills.

Jerusalem

Palestinian activist killed by Israeli settler in West Bank

A powerful magnitude 8.8 earthquake off Russia's Far Eastern Kamchatka Peninsula triggered tsunami waves of up to 16 feet nearby, and sparked evacuation orders in Japan, Hawaii and across the Pacific on Wednesday (July 30).

Hawaii

Tsunami reaches Hawaii after huge quake shakes Russia's Far East

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Meta eyes AI-powered ad growth

Breakdown

See The Full Story

Rise of AI