Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has rolled out new AI-powered search capabilities across its apps as part of a broader push into AI-native products, with Bank of America analysts saying the update could mark an early step toward a larger search and monetization opportunity within the company’s ecosystem.
Bank of America wrote in a note that Meta’s new “AI Mode” search feature on Facebook allows users to find answers based on public posts across Meta platforms, including Groups and Reels. The feature uses Meta AI, powered by the MuseSpark large language model, to generate responses grounded in publicly shared user content, which the company says is intended to surface real-world perspectives and experiences rather than conventional web-based search summaries.
Alongside the search update, Meta introduced new AI creative tools, including photo and video editing features such as collage templates and automated video montage generation from camera roll content. The company also added AI-driven photo presets that allow users to modify attributes such as clothing, hair, and accessories.
Bank of America described the launch as an “interesting initiative” that leverages real-time public content to improve search relevance, particularly for queries related to products, services, and experiences where Meta’s social graph could provide differentiated context.
The firm added that incremental search activity could also generate new intent signals, potentially improving ad relevance and targeting within Meta’s advertising ecosystem.
The analysts believe that AI-enabled search could represent a long-term growth avenue if Meta is able to drive adoption at scale across its user base.
In a scenario analysis, Bank of America estimated that if Meta’s roughly 3.5 billion daily active users averaged one additional query per day through AI Mode, the feature could generate around 1.3 trillion annual queries. If 20% of those queries were commercial in nature and monetized through advertising, the firm suggested this could translate into approximately 50 billion ad clicks and roughly $15 billion in incremental revenue at a $0.30 cost-per-click assumption, or about 5% of consensus 2027 revenue estimates.
The firm also noted that AI Mode could serve as an entry point into more agentic use cases over time, potentially allowing Meta to play a larger role across the consumer journey from intent formation through to transaction within its closed ecosystem.
Bank of America maintained a ‘Buy’ rating on Meta, pointing to continued product innovation in AI as a key driver of future engagement and monetization.
The firm highlighted upcoming catalysts including consumer agentic product launches, more advanced large language models, the Connect conference in September 2026, and additional detail on Meta’s enterprise AI strategy.
Shares of Meta were little changed at $596 in the early afternoon on Tuesday, down almost 10% so far this year.
