Pinterest CEO: Custom AI Drives User Engagement and Ad Revenue

Pinterest CEO Bill Ready highlighted the company's strategic use of custom artificial intelligence to drive growth and enhance user experience. In a recent interview, Ready emphasized how tailoring AI models to Pinterest's unique visual platform has led to a significant payoff in terms of user engagement and advertiser success.

Bill Ready's Vision for AI at Pinterest

Bill Ready, CEO of Pinterest, discussed the company's AI strategy, focusing on the development of custom, fit-for-purpose AI models. He explained that rather than relying on broad, general-purpose AI, Pinterest has invested in specialized models trained on its unique dataset. This approach, he stated, has yielded better results in understanding user intent and providing relevant recommendations.

The full discussion can be found on Bloomberg Technology's YouTube channel.

AI's Impact on User Engagement

Ready detailed how AI is transforming the user experience on Pinterest. He noted that the platform has seen 11 straight quarters of record high users, with double-digit growth in users over the last year. A significant portion of this growth, more than half, comes from Gen Z, a key demographic for the platform. Ready attributed this success to Pinterest's transformation into an AI-powered shopping assistant, where AI helps users discover products and ideas aligned with their tastes and needs.

The AI models are designed to understand the nuances of visual search and discovery. Ready stated, "We've been really focused on our own custom, fit-for-purpose models... We've done that by making it a visual-first platform. So much of shopping is a visual journey." This focus allows Pinterest to offer more relevant suggestions, as the AI can better grasp user preferences and trends.

Driving Advertiser Value with AI

The benefits of AI extend to advertisers as well. Ready explained that Pinterest's AI capabilities enable advertisers to connect with users on the platform more effectively. "We're looking at how we can make it so that... users see things that are actually helpful to them, and advertisers can connect with users here on Pinterest," he said. This leads to better ad performance, with a reported 65% improvement in the relevance of ads shown to users. This enhanced relevance translates to better returns for advertisers and a more satisfying experience for users.

Ready further elaborated on the specific AI advancements, mentioning that their custom models, trained on Pinterest's unique data, deliver significantly better results at a fraction of the cost compared to generic models. "We've been able to get to 30% better relevancy of recommendations on shopping for our users... and we've seen that translate into better returns for advertisers on TV, and users see more things that are actually helpful to them," Ready stated. He also highlighted the platform's ability to understand nuanced user needs, such as specific styles or occasions, through AI-driven tagging of visual content.

The Competitive Edge of Custom AI

The interview touched upon the broader AI landscape, where many companies are grappling with the cost and effectiveness of general-purpose AI models. Ready emphasized Pinterest's strategic advantage in developing its own specialized AI. "We've made Pinterest only for users under 16, private only for users under 16, approximately three years ago. We were the first and still are the only platform to do that," Ready noted, underscoring their commitment to user safety and a tailored experience. This proactive approach to user data and AI development sets Pinterest apart in its ability to deliver highly relevant and personalized content and advertising.

Ready concluded by stressing that Pinterest's AI strategy is not just about general capabilities but about deep specialization. "It's not just the models themselves. The AI doesn't have taste or style. Humans have taste and style. And so people come to Pinterest to figure out how to put outfits together... And we've learned from that and make better and better recommendations aligned to a user's taste," he said. This human-centric approach, powered by custom AI, is key to Pinterest's ongoing success.