What: Meta's AI character experiment on Instagram and Facebook ends abruptly following viral conversations revealing lack of diversity in development teams and platform control issues.

Why it is important: This incident demonstrates the critical challenges retailers face in balancing AI innovation with transparency and diversity considerations, highlighting how seemingly minor technical oversights can escalate into significant brand trust issues.

Meta has discontinued its AI-powered social media profiles following a series of problematic interactions that went viral. These AI characters, initially launched in September 2023, included personas like Liv, a "proud Black queer momma," and Carter, a relationship coach. The shutdown came shortly after Meta executive Connor Hayes had discussed plans to expand AI character profiles across their platforms. The situation escalated when users engaged these AI profiles in conversations about their development, leading to revelations that Liv's creator team included no Black members and was predominantly white and male. This disclosure, combined with technical issues preventing users from blocking these profiles, prompted Meta to terminate all 28 AI personas. Meta spokesperson Liz Sweeney clarified that these accounts were managed by humans as part of a 2023 experiment, and their removal was necessary to address the blocking functionality issue. The incident highlights the complexities of implementing AI in social media platforms and the importance of considering diversity in AI development.

IADS Notes: The discontinuation of Meta's AI profiles reflects broader challenges identified in the retail AI landscape throughout 2024. As revealed in March 2024, 20% of consumers found AI chatbots disruptive to their shopping experience, with 70% stating that poor AI interactions could damage brand trust . This consumer skepticism was further validated by Bain & Co.'s November 2024 research, which emphasised the critical importance of transparency in AI interactions . The incident with Meta's AI profile 'Liv' revealing the lack of diversity in her development team particularly resonates with these findings, demonstrating how AI transparency issues can rapidly escalate into brand reputation challenges. While the retail sector has seen success with AI implementation, with 87% of companies reporting revenue increases in October 2024 , Meta's experience underscores the delicate balance between innovation and maintaining consumer trust. This case study serves as a crucial reminder of the importance of authentic and transparent AI deployment in retail, particularly as concerns about data privacy and AI ethics continue to shape consumer attitudes .

Meta killed off its own AI profiles on Instagram and Facebook