Controversy over Facebook’s use of artificial-intelligence-created “user” accounts is not unusual in a business that often has to try innovations, some of which are embraced, some of which are rejected by people. Meta and Instagram had proposed allowing users to create AI user accounts that many say are just bots.
Even under the best of circumstances, up to 70 percent of innovations will fail, whether that is digital transformation projects, information technology projects or change programs in general.
The same general rule holds for venture capital investments as well.
Two points to note here are that Meta did react quickly to a policy that was highly unpopular, and also that failures on the way to maximizing the use of AI are inevitable.
Feature/Innovation | Description | User Opposition | Outcome |
Beacon Advertising System (2007) | Tracked users' online purchases and shared them as ads. | Privacy concerns; users felt uninformed and exposed. | Apologized; shut down in 2009 after lawsuits and backlash. |
Real Names Policy (2014–2015) | Required users to use legal names on the platform. | Criticized by activists and marginalized groups for safety concerns. | Policy softened, allowing alternative verification methods. |
Automatic Facial Recognition (2017–2021) | Auto-tagged people in photos using facial recognition technology. | Privacy concerns and fears of biometric data misuse. | Disabled feature in 2021 and deleted facial recognition templates. |
Instagram for Kids (2021) | Aimed to create a version of Instagram for children under 13. | Concerns about mental health, safety, and exploitation. | Paused development following criticism from parents and lawmakers. |
News Feed Redesigns | Periodic changes to Facebook’s feed algorithm and layout. | Complaints about irrelevant content and lack of chronological order. | Adjustments made to balance user satisfaction and business goals. |
Libra/Meta Diem Cryptocurrency (2019–2022) | Proposed cryptocurrency for global payments. | Regulatory opposition over financial stability and privacy concerns. | Project abandoned in 2022; assets sold. |
WhatsApp Privacy Policy Update (2021) | Suggested increased data sharing with Meta. | Perceived compromise of encryption and independence; user migration to competitors. | Delayed implementation; clarified policy and encryption commitments. |
Facebook Home and Phone (2013) | Custom Android skin integrating Facebook at the center of the smartphone. | Users found the interface intrusive and not broadly useful. | Discontinued after poor adoption. |
We might note that Alphabet and Google have had similar issues when innovating. The process is messy, often unsuccessful and requires agility, including willingness to back away when an innovation generates opposition from users.
Feature/Innovation | Description | User Opposition | Outcome |
Google Buzz (2010–2011) | A social networking tool integrated into Gmail, automatically connecting users. | Privacy concerns over automatic contact sharing without consent. | Discontinued in 2011 after legal settlements and backlash. |
Google Glass (2013–2015) | Augmented reality smart glasses targeting early adopters and developers. | Privacy concerns, social stigma ("Glassholes"), and high price point. | Halted consumer version in 2015; pivoted to enterprise applications. |
Google Wave (2009–2010) | A real-time collaboration and communication platform. | Confusing interface and unclear use case for mainstream users. | Shut down in 2010 after poor adoption. |
Project Ara (2013–2016) | Modular smartphone allowing users to swap out components like a camera or battery. | Cost concerns, technical challenges, and lukewarm market interest. | Canceled in 2016 despite initial excitement. |
Google+ (2011–2019) | Social network launched to compete with Facebook. | Low user engagement; criticized for forced integration with other Google services like YouTube. | Shut down in 2019 due to data breaches and low adoption. |
YouTube Real Name Policy (2013) | Encouraged users to use their Google+ profile (real name) on YouTube comments. | Resistance from YouTube creators and users valuing anonymity. | Policy abandoned; reverted to original comment system. |
Google Nexus Q (2012) | Media streaming device with social sharing features. | Criticized for high price, limited functionality, and reliance on Android devices. | Withdrawn shortly after launch; never returned to market. |
Google Allo (2016–2019) | Messaging app with smart assistant integration. | Privacy concerns over lack of end-to-end encryption by default and confusion over app purpose. | Shut down in 2019 in favor of Google Messages (RCS-based). |
Stadia (2019–2023) | Cloud gaming platform enabling play without a console or PC. | Criticized for lack of exclusive titles, connectivity issues, and unclear business model. | Discontinued in 2023 due to limited market traction. |
Sidewalk Labs Toronto Project (2017–2020) | Smart city initiative to develop a tech-driven urban space in Toronto. | Privacy concerns, data governance issues, and opposition from residents and activists. | Abandoned in 2020 amid public resistance and regulatory challenges. |
FLoC (Federated Learning of Cohorts) (2021–2022) | Ad tracking system designed to replace third-party cookies. | Privacy concerns from users, advocacy groups, and some web browser developers. | Replaced by the Topics API after significant criticism |
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