Meta to Use AI Chat Data to Personalize Content and Ads Starting December

Meta Platforms announced that beginning December 16, the company will start using users’ interactions with its generative AI tools to personalize both content and advertising across its major apps, including Facebook and Instagram.

The change — which will roll out globally except in the UK, the European Union, and South Korea — will apply to anyone who uses Meta AI, the company’s generative chatbot available via text or voice. Starting October 7, Meta will notify users of the update. However, there will be no option to opt out of this data integration.

AI INTERACTIONS TO SHAPE RECOMMENDATIONS

Meta said that user conversations with its AI — whether discussing travel, sports, or hobbies — will become an additional data signal alongside likes, follows, and other activity to help refine content recommendations and ad targeting.

For example, a user chatting with Meta AI about hiking might later see hiking-related groups, friends’ outdoor posts, or ads for hiking gear.
“People’s interactions simply are going to be another piece of the input that will inform the personalization of feeds and ads,” said Christy Harris, Meta’s privacy policy manager.

The company clarified that AI interactions involving sensitive topics — such as religion, sexuality, health, political affiliation, or ethnicity — will not be used for advertising purposes.

A MASSIVE PERSONALIZATION PUSH

The update is part of Meta’s broader strategy to make its AI ecosystem deeply integrated across all its apps. According to the company, Meta AI now has over 1 billion monthly active users, marking one of the fastest-growing AI deployments worldwide.

At the company’s annual shareholder meeting, CEO Mark Zuckerberg said the goal for 2025 is to make Meta AI the leading personal assistant, emphasizing personalization, natural voice interactions, and entertainment.

The integration comes amid a new phase of AI monetization among tech giants. Both Google and Amazon are already leveraging AI to boost cloud revenues, but Meta’s move is unique for its cross-platform scale and its decision to blend AI chat data with social and ad algorithms.

By combining behavioral, conversational, and contextual signals, Meta aims to offer advertisers more effective targeting while keeping users more engaged through hyper-personalized recommendations.

Microsoft Names Judson Althoff as CEO of Commercial Business, Nadella Refocuses on Technology

Microsoft announced on Wednesday that Chief Commercial Officer Judson Althoff will become CEO of its commercial business, marking a significant leadership shift aimed at strengthening the company’s focus on artificial intelligence and cloud technology.

In his new role, Althoff will oversee a newly created organization that brings together sales, marketing, and operations under one umbrella. This change allows CEO Satya Nadella to dedicate more of his time to Microsoft’s core technological priorities, including AI, data center infrastructure, and systems innovation.

NADALLA TO FOCUS ON TECH LEADERSHIP

In a blog post, Nadella said the move will enable him and the company’s top engineers to be “laser focused on our highest ambition technical work — across our datacenter buildout, systems architecture, AI science, and product innovation.

The restructuring reflects Microsoft’s broader ambition to dominate the AI platform race, integrating advanced AI models across its products and cloud ecosystem.

Althoff, who joined Microsoft in 2013 as president of Microsoft North America, will now also lead a new commercial leadership team comprising executives from engineering, marketing, sales, operations, and finance. Nadella praised him for his deep customer relationships and strong operational leadership.

DRIVING THE NEXT PHASE OF GROWTH

“We are in the midst of a tectonic AI platform shift,” Nadella said. “It requires us to manage and grow our at-scale commercial business today, while building the new frontier and executing flawlessly across both.”

The move comes as Microsoft continues to reorganize its operations around AI. In August, the company merged its developer and business AI marketplaces into a single platform called Microsoft Marketplace, designed to make it easier for corporate clients to buy, integrate, and deploy AI tools.

The commercial division, which includes Microsoft Azure, Office 365, and enterprise services, remains central to the company’s growth strategy. Analysts see Althoff’s appointment as a signal that Microsoft is tightening its execution on both enterprise expansion and AI integration.

CONTINUING AI MOMENTUM

Under Nadella’s leadership, Microsoft has transformed from a software company into one of the world’s leading cloud and AI infrastructure providers, with deep partnerships with OpenAI and major investments in Copilot across its Office and Windows products.

By separating commercial and technical leadership, Microsoft is betting that sharper focus will help sustain its momentum in a competitive landscape that includes Google Cloud, Amazon Web Services, and Meta’s AI tools.

Universal and Warner Music Close to Striking Landmark AI Licensing Deals

Universal Music Group (UMG) and Warner Music Group (WMG) are reportedly on the verge of signing major artificial intelligence licensing agreements that could reshape how music is used and monetized in the AI era, according to a Financial Times report published Thursday.

Sources familiar with the discussions said that both music giants could finalize their deals within weeks, as they negotiate with a mix of AI start-ups and major tech companies.

Among the start-ups in talks are ElevenLabs, Stability AI, Suno, Udio, and Klay Vision. The labels are also in advanced discussions with industry heavyweights such as Alphabet’s Google and Spotify, according to the report.

Neither Universal, Warner, Google, nor Spotify immediately responded to Reuters’ requests for comment.

TOWARD A NEW MUSIC-AI BUSINESS MODEL

The potential deals represent a pivotal moment for the music industry, which has long battled unauthorized AI-generated content and the use of copyrighted works to train generative models. If completed, the agreements would establish a formal licensing framework allowing AI firms to access and use songs legally — for both music generation and AI model training.

Negotiations have reportedly focused on creating a payment system modeled after music streaming royalties, where every use or AI-generated playback of a song would trigger a micropayment to rights holders.

LEGAL AND ETHICAL PRESSURES ON AI FIRMS

The rise of generative AI has fueled a surge in lawsuits from artists and rights holders, accusing companies of using copyrighted material without consent or compensation. These potential licensing deals could help defuse legal tensions while providing a new revenue stream for record labels.

AI companies like ElevenLabs and Suno have been pushing the boundaries of voice synthesis and music generation, raising ethical questions about authorship and originality. By formalizing partnerships with major labels, these firms could legitimize AI-created music and ensure artists receive compensation.

A LANDMARK SHIFT FOR THE INDUSTRY

If finalized, these agreements would mark the first large-scale AI licensing model in the global music industry — a step that could influence how other creative sectors handle the intersection between AI and copyright.

Music industry observers say such deals could become a template for balancing innovation with intellectual property protection, ensuring that the creative ecosystem adapts rather than resists AI’s growing influence.