00:00 Speaker a
I enjoyed your discussion at the meeting this morning. Many stories about what AI and II are thinking consider Pinterest to be a social media platform, but not. That's not the message I've got from now on.
00:10 Building preparation
No, that's exactly right. So first of all, we know that we are making an important revival of the platform. But at the heart of it is truly visual search and shopping where we have now. UH Gen Z is currently more than 50% of the platform, making it the largest and fastest growing demographic. At the heart of that, they come to Pinterest because they make their personal relevant AI-enabled shopping recommendations so good.
00:39 Building preparation
And, you know, it's really entrenched. As you know, Adobe has published an independent study from us that 39% of Gen Z considers Pinterest to be the first place to go searching. And it's really about the visual first search experience we're creating, and it really centers around personalization and shopping, and the unique curation that happens on our platform, but it really works really well with the users.
01:00 Speaker a
As they say, competition, the eyes, that is, it's fierce. I mean there's meta there, snap, they're doing something there. There is YouTube and video content. Something has happened in your business over the last two quarters. Apparently the lock has been unlocked for the past six months.
01:21 Building preparation
Well, I know, I've been 3 years and over 3 years as CEO, yeah, this was a strategy, but as we continue to build more and more personalisation, the AI, shopping experience continues to get better. Well, our visual search continues to improve. So, it's eighth of record users, and Gen Z is the fastest growing demographic in a little, but now it's over 50%.
01:52 Building preparation
We are growing across all generations. All the geography we track is only exacerbated by the benefits of AI. In particular, it has grown from the truly unique signals that we get to talk about our taste graphs over the past two years. We are currently 600 million active users per month. And they come to our platform and they design styling outfits and rooms and make product related.
02:22 Building preparation
What's not present on other platforms in the Western world is a completely unique signal. And it allows us to do something truly unique with AI. So, as a concrete example, I share it with the last revenue call, the latest multimodal visual search model, which is the company's own UH, train unique curation signals, and outperform the shelf model over 30 percent points on the relevance of shopping recommendations.
02:59 Building preparation
Therefore, we are not competing for general purpose AI or asking AI. But in the case of shopping where we are really focused, we can outperform that visual search, the relevance of shopping recommendations by 30 percentage points. Therefore, these kinds of things are concrete to the compounding benefits seen in both AI and its unique curated behavior on the platform.
03:22 Speaker a
So, is Pinterest an AI agent in itself?
03:26 Building preparation
So we don't use that term because it's not the way the user speaks. So, as you know, I don't think AI agents are going to listen anywhere like retailers.
03:36 Building preparation
You can hear it all the time in Silicon Valley, right? But um, step into the shopping boutique. Perhaps you can't hear anyone talking about the agent. But the truth on our platform is, when I ask Gen Z users why they come to Pinterest, one of the first things they say is that Pinterest is like getting me. So, what is behind it? It's AI, but it's also like shopping on their behalf. And every time they open the app, there are some great new recommendations that are not the same as accidental discoveries of things you didn't need.
04:12 Building preparation
But in reality people bring their intentions and they are just beginning their journey, but we are helping them finish their journey and they shop more seamlessly. For example, with Amazon, you can link your Amazon account and then press a button to purchase within the platform. I know I'm buying from Amazon, but I know I'll get great delivery, but I can buy it right away on the platform with just one tap. So, we've pulled down that purchase journey, great recommendations, and taps from one purchase to users, so it really resonates with users.
04:47 Speaker a
What will be next on AI's Pinterest next year?
04:50 Building preparation
Well, there's a lot to go here. As you know, the visual search capabilities we created work beyond just fashion and apparel and some of those shopping use cases. As you know, new categories are emerging, including travel and cars. And we talked about how men are growing up in our plot. You're also really growing the number of men on the platform. You know, we have historically distorted into women.
05:22 Building preparation
Well, we're still deeply involved there, but we're gaining more men on the platform. I can't see. Yes, and you may know, whether you know, whether you are buying, you know, whether you are thinking about apparel, watches, cars, or places you are going on vacation with family. These things are a very visual journey, the power of AI and the visual recommendation engines using those unique signals that we have, and it really resonates widely and globally.
05:54 Speaker a
You've seen several technical cycles in your time. Where do you think this AI cycle is?
06:00 Building preparation
Ah, II, we're still thinking so much in this early inning. Well, I think this has a multi-year runway. I think it's bigger or bigger than mobile or social. Well, I think I have a runway for many years. What I really find is that this shift towards AI, which has adopted new AI tools over the past two years, has opened up a truly unique space for ourselves.
06:40 Building preparation
And over the past two years, we have become more popular than ever. Because even if people use chatbots and more, they are looking for other new AI-enabled experiences too. And for a visual first shopping experience, it will really be a great personal shopping assistant for you. That's what Pinterest does. It resonates deeply not just with Gen Z, but with us growing in every generation and in every geography. Therefore, it resonates worldwide.
07:13 Building preparation
And that's a big opportunity for us too, with almost 80% of our non-US users, but there's only 20% of our monetization. So we're really strengthening that international side too.
07:26 Speaker a
Well, I'm some of the risks I'm hearing at this meeting with AI. This means eating a software company for lunch. Well, the hallucinations continue. What are your biggest concerns about AI?
07:45 Building preparation
Well, you know, I think that certainly promotes a lot of confusion, right? And you've seen it happen, but it's also going to promote a lot of human creativity. Well, I firmly believe that AI is not going to replace people. Those who use AI will replace those who do not use AI. Well, I think there is a possibility of a lot of humans being unlocked with AI. At the same time, I think guardrails are important.
08:23 Building preparation
One thing I'm most proud of is that our business is better than ever, and that there were record highs for users, revenue and all of these. We also did it while investing in the happiness of our users. We adjusted our AI for aggressiveness. We've done comprehensive AI. We have been private only for under 16 years old. Because it is not safe for children under the age of 16 to be contacted by strangers online.
09:00 Building preparation
So we're going to do private only. And these were very opposites. But we said that shouldn't, investing in the long-term happiness of our users should not be unique. Also, using AI makes sure that you adjust your AI for positive, keep it safe and addictive to it to be more useful than addictive. And even if we do those things, we are proving that we have a good business about proactiveness.
09:37 Speaker a
It's great to see what you're working on. I'm glad to meet you in general. Bill Ready, CEO of Pinterest. Talk to you right away.
