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Facebook stock got a boost after the launch of M, its new personal digital assistant. However, some believe M still has some kinks to work out.
Those with an eye on the social media space are likely already aware of M, Facebook’s (NASDAQ:FB) new personal digital assistant. Announced on August 26 by Facebook exec David Marcus, M, a function of Facebook’s Messenger app, will help users complete tasks and find information.
M has already garnered both criticism and favorable reactions from tech pundits. Here’s a look at the positive points and flaws they’ve highlighted about the service.
The M advantage
As mentioned, M, which is currently in the early stages of testing and available only to a few hundred people in the Bay Area, will be able to help users both complete tasks and find information. However, according to Marcus, it’s the former that really sets it apart.
“Unlike other AI-based services in the market, M can actually complete tasks on your behalf,” he said. “It can purchase items, get gifts delivered to your loved ones, book restaurants, travel arrangements, appointments and way more.”
Further underlining the difference between M and other personal digital assistants — such as Apple’s (NASDAQ:AAPL) Siri, Google’s (NASDAQ:GOOGL) Google Now and Microsoft’s (NASDAQ:MSFT) Cortana — Forbes’ Tony Bradley states that M is “more of a personal concierge service than a personal digital assistant.” He adds, “[t]hat makes a big difference in the overall service.”
M’s ability to complete tasks stems from the fact that there will be human beings working to carry them out. As Bradley puts it, “[y]ou’ll never necessarily know whether it’s an AI or a human being on the other end of your chats with M.”
Writing for Wired, Jessi Hempel also highlights M’s human aspect, noting that the Facebook employees running it, called M trainers, “have customer service backgrounds” and are able to “make the trickier judgement calls, and perform other tasks that software can’t.” For instance, testers have been using the service to do things like set up WiFi or cancel TV subscriptions — thereby avoiding “endless hold times and automated messages.”
An uphill battle?
M’s human element certainly makes it sound compelling, especially when compared to other personal digital assistants. However, even those positive on the service believe that it will face challenges.
For instance, Bradley points out that M may suffer due to the fact that users will have to open the Messenger app in order to use it — that’s in contrast to Siri, Google Now and Cortana, which are all “the default virtual assistant on their respective mobile platforms.” Furthermore, he notes that M may not be voice enabled, another trait Siri, Google Now and Cortana all share.
Marcus, however, is unconcerned, at least about Bradley’s first point. Speaking to Wired, he said that his hope is that M will ultimately be so powerful that people will bypass other options in its favor. He commented, “[w]e start capturing all of your intent for the things you want to do. Intent often leads to buying something, or to a transaction, and that’s an opportunity for us to [make money] over time.”
That said, money itself is another issue identified by Bradley, who is concerned that the human beings behind the service may ultimately present a problem for Facebook. Essentially, his worry is that if M gains popularity, the company will have to employ a significant number of people to run it — and that of course will cost money.
The issue of cost is covered on TechCrunch as well, where an article states, “[i]f Facebook wants to scale out this feature, it will either have to wait until its humans teach AI to handle most requests automatically, or it will have to spend a fortune hiring an army of people to assist its assistant.”
On a more philosophical note, Michael Thomsen, also of Forbes, has suggested that M and other personal digital assistants are problematic in that the point of them “is not to help you but to multiply the number of spaces in your life where you feel help is necessary.”
Facebook stock impact
Facebook stock closed at $87.19 on the day M was launched, up 5.05 percent from the previous day’s close. Since then, it’s risen further, closing Wednesday at $89.74, up 2.88 percent. Year-to-date Facebook stock is up 15.02 percent.
Investors will have to wait and see if M has any further positive impact on the company’s share price; however, prospects appear potentially positive — a new App Annie report lends some credence to Marcus’ belief that M will not suffer from being contained within the Messenger app. It shows that the Messenger app is the second-most downloaded iOS app of all time, second only to the Facebook app. Certainly some food for thought as the service moves through testing.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.