Mark Zuckerberg presented Meta’s latest products last month, introducing advancements such as the new AI assistant, Muse, and smart devices, including AI-enabled glasses. Despite the company’s robust technological pursuits, he did not mention Instagram or Facebook during his keynote at the Meta Connect event—a surprising omission given they are pivotal to Meta’s success.
Controversies Surrounding Meta
Meta has faced a barrage of legal challenges over the past year, particularly concerning allegations that its products are potentially addictive to young people. Evidence gathered for these cases includes internal emails and testimony from whistleblowers. Despite the company’s denials, a significant ruling in New Mexico earlier this year found Meta liable for failing to warn users about these risks, resulting in a $942 million fine. In response, Meta is appealing the decision.
The landscape for the company is further complicated by the release of Aaron Sorkin’s film, “The Social Reckoning,” which examines allegations that Meta ignored its platforms’ negative impacts on youth. Meanwhile, public sentiment is uneasy—two-thirds of Americans reportedly hold an unfavourable view of Zuckerberg.
Growth Despite Scrutiny
Despite negative press, Meta’s user numbers continue to rise, with its apps showing a 3% year-on-year increase. Financially, the company is thriving, reporting a 28% increase in second-quarter revenue for 2025. This growth persists despite cutting back on targeting the teen demographic, which Meta claims contributes minimally to its overall revenue compared to platforms like TikTok.
Furthermore, a massive $18 billion settlement with several US states allowed Meta to avoid disclosing potentially damaging internal documents, which led to a boost in the company’s stock value. This manoeuvre highlights Meta’s capability to manage adversity effectively, bolstering its position in the market.
Meta’s AI and Privacy Concerns
Zuckerberg has outlined ambitious plans for Muse, an AI agent capable of performing multifaceted tasks. However, the integration of such technology hinges on user trust, as the app requires access to sensitive personal information. Given Meta’s past issues with data privacy, notably the Cambridge Analytica scandal, the reception of Muse will be pivotal.
The AI personal assistant, Muse, has already exceeded expectations with over five million downloads in just a month. Users are increasingly drawn to its capabilities, such as managing tasks autonomously, despite privacy concerns. The introduction of a personal virtual machine is intended to address these issues by ensuring user data security.
Balancing Privacy and Innovation
Meta’s strides in AI are juxtaposed against ongoing privacy concerns. Zuckerberg addressed these during his Meta Connect presentation, highlighting technological safeguards for data handling. Nevertheless, reports of Muse accessing emails without consent have sparked public debate, but Meta maintains that such access only occurs with user permission.
Ultimately, Meta’s effectiveness in leveraging its AI advancements and securing user trust will determine its continued prosperity. The company’s strategic pivot to AI requires maintaining a delicate balance between innovation and privacy assurance while navigating regulatory landscapes.
Reporting based on coverage first published by bbc.co.uk.