Meta Pivots to AI for Small Businesses After Metaverse Retreat

Edgen Stock·Mar 25 2026, 14:00

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Key Takeaways

Meta is launching “Meta Small Business Services” to provide AI-powered tools for entrepreneurs across its platforms, signaling a significant strategic shift away from its costly metaverse venture. The initiative aims to create a new revenue stream by targeting the small business market, but faces immediate questions about the reliability of its AI systems.

New Initiative: On March 25, Meta announced a company-wide push to help small businesses grow using new AI tools on Facebook, Instagram, and WhatsApp.
Strategic Pivot: The launch follows a strategic retreat from the metaverse, with VR access to its flagship Horizon Worlds platform ending on June 15 after persistent losses in its Reality Labs division.
Execution Risk: The program's success is challenged by existing AI moderation flaws, which have already mistakenly suspended legitimate small business accounts, alienating the exact user base Meta aims to attract.

Meta Pivots to AI After Scaling Back Metaverse

Meta confirmed on March 25 the launch of "Meta Small Business Services," a new company-wide initiative designed to popularize artificial intelligence tools for entrepreneurs. The effort, led by President Dina Powell McCormick and Head of Product Naomi Gleit, aims to provide services across Facebook, Instagram, and WhatsApp to help small businesses scale in the AI era. The move marks a decisive pivot from the company's multi-year investment in the metaverse, which struggled to gain traction. The shift follows the announcement that VR access to its Horizon Worlds platform will end on June 15, a decision made after the Reality Labs division incurred persistent financial losses.

In the AI era, it should be easier than ever for people to build new businesses. We want to build the services that enable this.

— Mark Zuckerberg, in an internal post.

New Services Face Scrutiny Over Flawed Moderation

The initiative's potential is tempered by significant operational failures in Meta's existing AI systems. Small businesses have reported sudden and unexplained account suspensions that damage their operations. One tattoo studio with over 4,000 followers lost access to its accounts on March 6 after its content was flagged as fraudulent by Meta's AI. Similarly, a makeup business with 5,000 followers and 230 five-star reviews was suspended for a week over a post of its work. These businesses reported an inability to appeal the decisions through Meta's automated systems, highlighting a critical flaw that could undermine trust and adoption of the new AI-powered business tools.