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	<title type="text">Ryan Holmes | Vox</title>
	<subtitle type="text">Our world has too much noise and too little context. Vox helps you understand what matters.</subtitle>

	<updated>2019-03-06T11:01:09+00:00</updated>

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		<entry>
			
			<author>
				<name>Ryan Holmes</name>
			</author>
			
			<title type="html"><![CDATA[Artificial intelligence doesn’t have to be evil. We just have to teach it to be good.]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2017/11/30/16577816/artificial-intelligence-ai-human-ethics-code-behavior-data" />
			<id>https://www.vox.com/2017/11/30/16577816/artificial-intelligence-ai-human-ethics-code-behavior-data</id>
			<updated>2017-11-30T14:38:52-05:00</updated>
			<published>2017-11-30T13:00:01-05:00</published>
			<category scheme="https://www.vox.com" term="Artificial Intelligence" /><category scheme="https://www.vox.com" term="Innovation" /><category scheme="https://www.vox.com" term="Technology" />
							<summary type="html"><![CDATA[Sensational reports surfaced earlier this year about Google&#8217;s DeepMind AI growing &#8220;highly aggressive&#8221; when left to its own devices. Researchers at Google had AI &#8220;agents&#8221; face off in 40 million rounds of a fruit-gathering computer game. When apples grew scarce, the agents started attacking each other, killing off the competition&#8212;humanity&#8217;s worst impulses echoed &#8230; or [&#8230;]]]></summary>
			
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<img alt="" data-caption="Microsoft’s problematic Tay bot | Twitter" data-portal-copyright="Twitter" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/9776181/Microsoft_Tay.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	Microsoft’s problematic Tay bot | Twitter	</figcaption>
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<p>Sensational reports surfaced earlier this year about Google&rsquo;s DeepMind AI growing &ldquo;<a href="https://qz.com/911843/googles-ai-got-highly-aggressive-when-competition-got-stressful-in-a-fruit-picking-game/">highly aggressive</a>&rdquo; when left to its own devices. Researchers at Google had <a href="https://storage.googleapis.com/deepmind-media/papers/multi-agent-rl-in-ssd.pdf">AI &ldquo;agents&rdquo; face off</a> in 40 million rounds of a fruit-gathering computer game. When apples grew scarce, the agents started attacking each other, killing off the competition&mdash;humanity&rsquo;s worst impulses echoed &#8230; or so the critics said.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>AI needs religion — a code that doesn’t change based on context or training set. </p></blockquote></figure>
<p>Nor is it hard to find other examples of AI &ldquo;learning&rdquo; the wrong types of behavior, like <a href="https://www.theguardian.com/technology/2016/mar/24/tay-microsofts-ai-chatbot-gets-a-crash-course-in-racism-from-twitter">Microsoft&rsquo;s infamous Tay bot</a>. Deployed on Twitter in early 2016, Tay was supposed to &ldquo;learn&rdquo; from user interactions. (&ldquo;The more you talk, the smarter Tay gets,&rdquo; boasted her profile.) But she was beset with racist, anti-semitic and misogynistic commentary, almost from the start. Learning from her environment, Tay began spitting out a string of inflammatory responses, including, infamously, &ldquo;bush did 9/11, and Hitler would have done a better job than the monkey we have now.&rdquo; Microsoft developers pulled the plug a mere 16 hours after Tay&rsquo;s release.</p>

<p>This is a simple example. But herein lies the challenge. Yes, billions of people contribute their thoughts, feelings and experiences to social media every single day. But training an AI platform on social media data, with the intent to reproduce a &ldquo;human&rdquo; experience, is fraught with risk. You could liken it to raising a baby on a steady diet of Fox News or CNN, with no input from its parents or social institutions. In either case, you might be breeding a monster.</p>

<p>The reality is that while social data may well reflect the digital footprint we all leave, it&rsquo;s neither true to life nor necessarily always pretty. Some social posts reflect an aspirational self, perfected beyond human reach; others, veiled by anonymity, show an ugliness rarely seen &ldquo;in real life.&rdquo;</p>

<p>Ultimately, social data &mdash; alone &mdash; represents neither who we actually are nor who we <em>should </em>be. Deeper still, as useful as the social graph can be in providing a training set for AI, what&rsquo;s missing is a sense of ethics or a moral framework to evaluate all this data. From the spectrum of human experience shared on Twitter, Facebook and other networks, which behaviors should be modeled and which should be avoided? Which actions are right and which are wrong? What&rsquo;s good &#8230; and what&rsquo;s evil?</p>
<h2 class="wp-block-heading">Coding religion and ethics into AI</h2>
<p>Grappling with how to build ethics into AI isn&rsquo;t necessarily a new problem. As early as the 1940s, Isaac Asimov was hard at work formulating his <a href="https://io9.gizmodo.com/why-asimovs-three-laws-of-robotics-cant-protect-us-1553665410">Laws of Robotics</a>. (The first law: A robot may not harm a human being, or through inactivity allow a human to come to harm.)</p>

<p>But these concerns aren&rsquo;t science fiction any longer. There&rsquo;s a pressing need to find a moral compass to direct the intelligent machines we&rsquo;re increasingly sharing our lives with. (This grows even more critical as <a href="https://www.wired.com/story/googles-learning-software-learns-to-write-learning-software/">AI begins to make its own AI</a>, without human guidance at all, as is already the case with Google&rsquo;s AutoML.) Today, Tay is a relatively harmless annoyance on Twitter. Tomorrow, she may well be devising strategy for our corporations &#8230; or our heads of state. What rules should she follow? Which should she flout? &nbsp;</p>

<p>Here&rsquo;s where science comes up short. The answers can&rsquo;t be gleaned from any social data set. The best analytical tools won&rsquo;t surface them, no matter how large the sample size.</p>

<p>But they just might be found in the Bible.</p>

<p>And the Koran, the Torah, the Bhagavad Gita and the Buddhist Sutras. They&rsquo;re in the work of Aristotle, Plato, Confucius, Descartes and other philosophers both ancient and modern. We&rsquo;ve spent literally thousands of years devising rules of human conduct &mdash; the basic precepts that allow us (ideally) to get along and prosper together. The most powerful of these principles have survived millennia with little change, a testament to their utility and validity. More importantly, at their core, these schools of thought share some remarkably similar dictates about moral and ethical behavior &mdash; from the Golden Rule and the sacredness of life to the value of honesty and virtues of generosity.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>As AI grows in sophistication and application, we need, more than ever, a corresponding flourishing of religion, philosophy and the humanities.</p></blockquote></figure>
<p>As AI grows in sophistication and application, we need, more than ever, a corresponding flourishing of religion, philosophy and the humanities. In many ways, the promise &mdash; or peril &mdash; of this most cutting-edge of technologies is contingent on how effectively we apply some of the most timeless wisdom. The approach doesn&rsquo;t have to, and shouldn&rsquo;t, be dogmatic or aligned with any one creed or philosophy. But AI, to be effective, needs an ethical underpinning. Data alone isn&rsquo;t enough. AI needs religion: A code that doesn&rsquo;t change based on context or training set.</p>

<p>In place of parents and priests, responsibility for this ethical education will increasingly rest on frontline developers and scientists. Ethics hasn&rsquo;t traditionally factored into the training of computer engineers; this may have to change. Understanding hard science alone isn&rsquo;t enough when algorithms have moral implications. As emphasized by <a href="https://gizmodo.com/why-well-eventually-want-our-robots-to-deceive-us-1819114004">leading AI researcher Will Bridewell</a>, it&rsquo;s critical that future developers are &ldquo;aware of the ethical status of their work and understand the social implications of what they develop.&rdquo; He goes so far as to advocate study in Aristotle&rsquo;s ethics and Buddhist ethics so they can &ldquo;better track intuitions about moral and ethical behavior.&rdquo;</p>

<p>On a deeper level, responsibility rests with the organizations that employ these developers, the industries they&rsquo;re part of, the governments that regulate those industries and &mdash; in the end &mdash; us. Right now, public policy and regulation on AI remains nascent, if not nonexistent. But concerned groups are raising their voices. <a href="https://openai.com/">Open AI</a> &mdash; formed by Elon Musk and Sam Altman &mdash; is pushing for oversight. Tech leaders have come together in the <a href="https://www.partnershiponai.org/">Partnership on Artificial Intelligence</a> to explore ethical issues. Watchdogs like <a href="https://ainowinstitute.org/">AI Now</a> are popping up to identify bias and root it out.</p>

<p>What they&rsquo;re all searching for, in one form or another, is an ethical framework to inform how AI converts data into decisions &mdash; in a way that&rsquo;s fair, sustainable and representative of the best of humanity, not the worst.</p>

<p>This isn&rsquo;t a pipedream. If fact, it&rsquo;s eminently within reach. It&rsquo;s worth pointing out that in the case of Google&rsquo;s &ldquo;highly aggressive&rdquo; fruit-gathering AI, researchers eventually switched up the context. Algorithms were deliberately tweaked to make cooperative behavior beneficial. In the end, it was those agents who learned to work together who triumphed. The lesson: AI can reflect the better angels of our nature, if we show it how.</p>
<hr class="wp-block-separator" />
<p><a href="https://www.linkedin.com/in/rholmes/"><em>Ryan Holmes</em></a><em> is the founder and CEO of </em><a href="https://hootsuite.com"><em>Hootsuite</em></a><em>. He started the company in 2008, and has helped grow it into the world&rsquo;s most widely used social relationship platform, with 16 million-plus users, including more than 800 of the Fortune 1000 companies. Reach him </em><a href="https://twitter.com/invoker"><em>@Invoker</em></a><em>.</em></p>
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<p><small><em>This article originally appeared on Recode.net.</em></small></p>
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			<title type="html"><![CDATA[Why an Instagram Tweak Spells the Beginning of a Multibillion-Dollar Industry]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/8/19/11617814/why-an-instagram-tweak-spells-the-beginning-of-a-multibillion-dollar" />
			<id>https://www.vox.com/2015/8/19/11617814/why-an-instagram-tweak-spells-the-beginning-of-a-multibillion-dollar</id>
			<updated>2019-03-06T06:01:09-05:00</updated>
			<published>2015-08-19T10:46:04-04:00</published>
			<category scheme="https://www.vox.com" term="Business &amp; Finance" /><category scheme="https://www.vox.com" term="Instagram" /><category scheme="https://www.vox.com" term="Media" /><category scheme="https://www.vox.com" term="Money" /><category scheme="https://www.vox.com" term="Social Media" /><category scheme="https://www.vox.com" term="Technology" />
							<summary type="html"><![CDATA[Last week, Instagram &#8212; the image-based social network with more than 300 million users &#8212; made a change that barely received notice outside the tech world. It officially switched on its API, or application programming interface, for ads. The reaction, or lack thereof, was predictable. APIs aren&#8217;t generally the stuff of front-page news. On a [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="@sarahfagan94/BenandJerrys/Instagram" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/15804598/benandjerrys2.0.1537620655.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p>Last week, Instagram &mdash; the image-based social network with more than 300 million users &mdash; made a change that barely received notice outside the tech world. It officially <a href="http://mashable.com/2015/08/04/more-instagram-ads/">switched on its API</a>, or application programming interface, for ads.</p>

<p>The reaction, or lack thereof, was predictable. APIs aren&rsquo;t generally the stuff of front-page news. On a technical level, the change means that ads can now be posted on Instagram by just about anyone, using online tools that plug directly into the network. On a practical level, it means that <a href="http://recode.net/2015/06/02/instagram-starts-getting-serious-about-ads-expect-more-buttons-more-targeting-and-more-ads/">the Internet&rsquo;s newest advertising behemoth</a> is officially open for business. Thanks in part to the new API, Instagram&rsquo;s current mobile ad revenue of $595 million a year is expected to <a href="http://www.emarketer.com/Article/Instagram-Mobile-Ad-Revenues-Reach-281-Billion-Worldwide-2017/1012774">rocket to $2.8 billion</a> by 2017 &mdash; leaving even giants like Twitter and Google in the rearview mirror in the U.S. market.</p>

<p>For marketers, Instagram has long been a coveted target. The network is believed to have <a href="http://recode.net/2014/12/10/instagram-hits-300-million-users-now-larger-than-twitter/">passed Twitter and LinkedIn in terms of active users</a>, and to now be second in size only to Facebook (its parent company) among U.S.-based social platforms. Moreover, while growth at Twitter and Facebook is largely plateauing, Instagram expanded at an incredible 50 percent clip in 2014. And <a href="http://www.emarketer.com/Article/Young-Users-Zoom-on-Instagram/1011795">its users are considerably younger</a> than those on other major networks: A full 44 percent of people on Instagram are 18-29, versus just 23 percent on Facebook and 33 percent on Twitter.</p>

<p>Reaching those users through advertising, however, hasn&rsquo;t been easy. Instagram has been famously cautious in rolling out ads. The network began testing the waters with photo-based ads in late 2013, adding video ads last year. These stream by in feeds alongside ordinary photos, distinguishable only by a small &ldquo;sponsored&rdquo; disclaimer. Reception was largely positive and initial results encouraging: The visual format helped &ldquo;cut through the noise,&rdquo; in ad lingo, and users reported <a href="http://www.theguardian.com/media-network/2015/aug/07/instagram-photos-advertising-brand-marketing">2.8 times higher recall</a> compared to traditional online ad formats.</p>

<p>But companies had to pay <a href="http://www.fool.com/investing/general/2015/08/10/can-facebook-incs-instagram-generate-28-billion-in.aspx">a minimum of $200,000</a> to purchase these ads, and &mdash; in a &ldquo;Mad Men&rdquo;-era throwback &mdash; orders had to be negotiated individually with a special Instagram sales rep, then forwarded on for final approval. This process allowed Instagram to keep a tight lid on the look and feel of ads, and to ensure that users weren&rsquo;t swamped with spam. But few businesses had the resources, or patience, to make Instagram part of their ad campaigns.</p>

<p>With Instagram&rsquo;s new API offering, however, all that has suddenly changed. Ads can now be purchased by just about anyone, using online ad-buying tools offered by official Instagram partners. Rather than negotiating over the phone with a salesperson, businesses can now log onto third-party sites to create, target and place an ad &mdash; self-serve style. For marketers, this means the ability to automate and scale the ad-buying process. They can also compare results &mdash; apples-to-apples &mdash; to digital buys on other networks like Facebook or Twitter, verifying the returns on their Instagram investments.</p>

<p>While these changes might not seem earth-shattering, experts aren&rsquo;t sparing the <a href="http://www.businessinsider.com/instagram-switches-on-ads-api-2015-8">superlatives</a>, calling the move &ldquo;one of the most anticipated moments in the evolution of advertising.&rdquo; Comparisons have already begun to flow in to Facebook&rsquo;s original ad API launch back in 2011, which spurred the growth of a <a href="http://fortune.com/2015/07/29/facebook-mobile-ad-revenue/">$15 billion-a-year</a> ad marketplace.</p>

<p>Indeed, much of Instagram&rsquo;s ad potential rests in the data treasure trove collected by its parent company. In June, Instagram opened up ad-targeting tools that tap into user data from Facebook profiles. This makes it possible to laser focus ads to a virtually limitless number of interest groups, from twentysomething yoga lovers to baby boomers into RV travel. The network has also souped up the look and functionality of its ads. Special buttons on images now let users &ldquo;shop now,&rdquo; &ldquo;learn more&rdquo; and &ldquo;sign up,&rdquo; while &ldquo;carousel&rdquo; ads showcase multiple images at once.</p>

<p>But will opening the floodgates to ads turn off Instagram&rsquo;s dedicated users &mdash; who now post well upward of 70 million images daily &mdash; and lead to an exodus to newer, sexier apps like Snapchat? The network is hoping that its slow, careful rollout will help avoid the kind of user backlash that has plagued other platforms. The &ldquo;native&rdquo; format means ads look a lot like normal posts &mdash; indeed, in trials top-performing ads received tens of thousands of likes from enthusiastic viewers. At the same time, users <a href="http://www.theguardian.com/media-network/olswang-partner-zone/2015/aug/10/instagram-launch-mobile-display-advertising-api">have the option</a> of clicking &ldquo;hide this&rdquo; on unwanted ads. This feedback is used to further refine targeting &mdash; ensuring that, for instance, extreme-sports lovers see ads for Red Bull, not Pampers.</p>

<p>Of course, paid ads aren&rsquo;t the only option for businesses hoping to reach out to Instagram users. A new wave of tools is also making it easier for companies to connect the old-fashioned way &mdash; by posting eye-popping images and <a href="http://blog.hootsuite.com/8-ways-get-likes-followers-instagram/">building a following over time</a>, just like the rest of us. Third-party tools that allow users to schedule multiple posts in advance and monitor comments and likes have long been available for use with Twitter and Facebook. But Instagram was a stubborn holdout. In fact, for years, the most common user request at Hootsuite was to build exactly <a href="https://hootsuite.com/pages/landing/instagram">this kind of Instagram integration</a>. But with recent changes, it&rsquo;s now possible for ordinary users to queue up posts in advance and launch coordinated campaigns using these tools.</p>

<p>For marketers, this all adds up to one message: Instagram is finally open for business. The network offers an <a href="http://www.theguardian.com/media-network/2015/aug/07/instagram-photos-advertising-brand-marketing">uncommon blend</a> of substance and style &mdash; Facebook-powered analytics plus fashion-mag aesthetics. It&rsquo;s mobile-first (indeed, mobile-only): A key factor, considering that fully three-quarters of Facebook&rsquo;s revenue now comes from mobile ads. And it&rsquo;s uniquely positioned to reach young, socially active users. If the network can find a way to keep both users and advertisers happy, it may well be on its way to solving a multibillion-dollar ad riddle in the years ahead.</p>
<hr class="wp-block-separator" />
<p><em>Ryan Holmes is the founder and CEO of </em><a href="https://hootsuite.com"><em>Hootsuite</em></a><em>, social media management tools with 11 million users, including more than 800 of the Fortune 1000 companies. Reach him </em><a href="https://twitter.com/invoker"><em>@invoker</em></a>.</p>

<p><small><em>This article originally appeared on Recode.net.</em></small></p>
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			<title type="html"><![CDATA[For Impulse Shoppers, a Brave New Retail World on Social Media]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/7/24/11615006/for-impulse-shoppers-a-brave-new-retail-world-on-social-media" />
			<id>https://www.vox.com/2015/7/24/11615006/for-impulse-shoppers-a-brave-new-retail-world-on-social-media</id>
			<updated>2019-03-06T05:57:25-05:00</updated>
			<published>2015-07-24T06:00:16-04:00</published>
			<category scheme="https://www.vox.com" term="Amazon" /><category scheme="https://www.vox.com" term="Big Tech" /><category scheme="https://www.vox.com" term="Business &amp; Finance" /><category scheme="https://www.vox.com" term="Commerce" /><category scheme="https://www.vox.com" term="E-commerce" /><category scheme="https://www.vox.com" term="Facebook" /><category scheme="https://www.vox.com" term="Google" /><category scheme="https://www.vox.com" term="Innovation" /><category scheme="https://www.vox.com" term="Instagram" /><category scheme="https://www.vox.com" term="Media" /><category scheme="https://www.vox.com" term="Money" /><category scheme="https://www.vox.com" term="Pinterest" /><category scheme="https://www.vox.com" term="Snapchat" /><category scheme="https://www.vox.com" term="Social Media" /><category scheme="https://www.vox.com" term="Technology" /><category scheme="https://www.vox.com" term="Twitter" />
							<summary type="html"><![CDATA[Impulse shoppers, welcome to a brand-new way to feed your fix. In the span of a few weeks last month, Facebook, Pinterest and Instagram unveiled nifty new buttons that let users buy the must-have clothes, crafts and gadgets streaming by in their feeds. Google has its own button in the works, while Twitter has been [&#8230;]]]></summary>
			
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<p>Impulse shoppers, welcome to a brand-new way to feed your fix. In the span of a few weeks last month, Facebook, Pinterest and Instagram unveiled nifty new buttons that let users buy the must-have clothes, crafts and gadgets streaming by in their feeds. Google has its own button in the works, while Twitter has been quietly testing a &ldquo;buy&rdquo; button since last September. The age of social media shopping &mdash; a.k.a. social commerce &mdash; is upon us.</p>

<p>Well, almost. While it seems to make sense to combine the experiences of socializing with friends and shopping &mdash; as the inventors of the mall discovered ages ago &mdash; it&rsquo;s easier said than done online. A bewitching combination of technical and psychological obstacles means that two decades after Amazon began revolutionizing e-commerce, social commerce is still waiting to get off the ground.</p>

<p>Is this the moment when users finally embrace Facebook, Twitter and rising networks like Instagram, Pinterest and Snapchat for their retail needs? That depends.</p>
<h3 class="red">The Case for Social Shopping</h3>
<p>When it comes to deciding what to buy, ads may sway our judgement, but input from people we trust often seals the deal. This holds just as true when bargain-shopping with BFFs at bricks-and-mortar stores as when hunting for deals on the Internet. <a href="http://blog.hubspot.com/marketing/why-people-buy-factors-influence-purchase-descision">Four out of five people</a> say that posts from friends directly influence buying decisions. &ldquo;<a href="https://en.wikipedia.org/wiki/Social_proof">Social proof</a>,&rdquo; as marketers call it, keeps the retail wheels greased and moving.</p>

<p>So what better place to buy online than social media sites where friends and followers are already hanging out and sharing information? &ldquo;Here, the inspiration for a particular look isn&rsquo;t sparked by some vacant-eyed model, but by friends and frenemies alike,&rdquo; notes industry analyst Jake Sorofman in a recent <a href="http://blogs.gartner.com/jake-sorofman/headless-commerce-monetizes-moments-of-truth/">blog post</a> on the subject.</p>

<p>At the same time, the fleeting nature of the news feed &mdash; streaming by with the trends of the moment &mdash; lends a sense of urgency to the social retail experience. Exclusive offers and flash promotions add to pressure on social media &ldquo;to act quickly or miss out on the deal at hand,&rdquo; <a href="http://time.com/money/3310805/twitter-facebook-buy-button-impulse/">writes retail columnist Brad Tuttle in Time</a>, and users tend to forgo the obsessive comparison shopping that characterizes other online purchases.</p>

<p>Plus, when done right, social shopping doesn&rsquo;t even have to feel like shopping at all. You don&rsquo;t have to stop what you&rsquo;re doing and go to a special site or fill up a virtual shopping cart and head to checkout &mdash; all tasks that turn the fleeting joy of buying into a chore and sink many a prospective purchase. &ldquo;Why usher consumers to the checkout line &mdash; and risk the abandonment of conviction, much less shopping carts &mdash; when you can get the deal done in that treasured moment of irrational awe?&rdquo; writes Sorofman.</p>
<h3 class="red">The Reality of Social Shopping</h3>
<p>That vision of a seamless social media shopping experience is still a far cry from the reality, however. Until now, &ldquo;shopping&rdquo; on social media has generally meant being redirected away from the app or platform to checkout at a traditional retailer or e-commerce site. Especially on mobile devices, this represents a step backward in terms of convenience.</p>

<p>&ldquo;[Everyone] uses their phone, but it&rsquo;s still a pain to buy things,&rdquo; <a href="http://techcrunch.com/2015/06/02/pinterest-unveils-buyable-pins-a-way-to-purchase-things-directly-from-pinterest/#.vnbbsp:j3rt">Pinterest CEO Ben Silbermann said</a> at an event unveiling his network&rsquo;s new Buyable Pins. &ldquo;There are fiddly menus [and] you have to squint to see the images.&rdquo;</p>

<p>Apart from the inconvenience, this is also bad business: By sending users away from their own sites, networks lose valuable eyeballs to other services.</p>

<p>Payment has presented a similar challenge. Amazon revolutionized e-commerce in the late 1990s with One-Click shopping &mdash; storing payment and shipping information so users didn&rsquo;t have to go through a burdensome checkout process each time. The problem is that, up until now, social networks haven&rsquo;t generally asked for those details or kept them on file. &ldquo;More often than not payment credentials aren&rsquo;t tied to social networks and consumers don&rsquo;t associate them with payments period,&rdquo; <a href="http://www.pymnts.com/news/2015/social-commerce/#.VYIHbVVikp">notes mobile commerce executive Jon Squire</a> in the industry publication Pymnts. So the idea of effortless, one-tap checkout on social networks has remained largely fantasy.</p>

<p>These technical challenges are minor, however, compared with the logistical ones. For social networks to be effective as commerce sites, they have to integrate with the inventory systems of retailers. This means actively tracking purchases and stock at the thousands of merchants big and small that would be selling on their platform &mdash; a daunting bookkeeping task even for data-savvy social networks.</p>

<p>&ldquo;[A] lot of these apps are saying, &lsquo;We have millions of users, so we can just put in a payment processor and people will just buy, right?&rsquo;&rdquo; <a href="http://recode.net/2015/06/14/why-buy-buttons-will-pose-big-challenges-for-google-facebook-pinterest-and-twitter/">explains social commerce CEO Razvan Roman</a> on <strong>Re/code</strong>. &ldquo;It&rsquo;s just not that simple.&rdquo;</p>

<p>Complicating things further is the fact that retailers don&rsquo;t have one standardized system for monitoring inventory, meaning that social networks would have to work with a jumble of different, often ad-hoc programs.</p>

<p>Even more important is the fact that &mdash; for all of their user data &mdash; social networks haven&rsquo;t been able to offer up much in the way of &ldquo;intelligent shopping.&rdquo; Dedicated e-commerce platforms like Amazon are effectively able to read users&rsquo; minds, using advanced algorithms to suggest products based on past visits, other users&rsquo; purchases and many other factors. By contrast, most &ldquo;social platforms today provide a &lsquo;siloed&rsquo; experience,&rdquo; <a href="http://www.pymnts.com/news/2015/social-commerce/#.VbA0M9IQJNm">writes marketing executive Gary Lombardo</a> in Pymnts, with little awareness of consumers&rsquo; larger shopping habits, transaction history, or even the full range of offerings from a particular brand.</p>

<p>Finally, the biggest barrier to social commerce may be the most obvious: Users flock to social networks to, well, be social &mdash; not necessarily to shop. While browsing products is increasingly a part of the social media experience, users are generally in what&rsquo;s called the &ldquo;discovery and awareness&rdquo; phase of the sales process &hellip; a long way from taking out their credit cards.</p>

<p>Even on Pinterest, where people are typically further along in the so-called sales funnel, not everyone is keen on buying, and in-your-face &ldquo;buy now&rdquo; buttons may rub users the wrong way. &ldquo;Push them too aggressively and in contexts that don&rsquo;t make sense and the Pinterest faithful may revolt,&rdquo; <a href="http://recode.net/2015/06/14/why-buy-buttons-will-pose-big-challenges-for-google-facebook-pinterest-and-twitter/">warns <strong>Re/code</strong> reporter Jason Del Rey</a>.</p>

<p>So far, this gauntlet of obstacles has frustrated even social media&rsquo;s biggest player. In 2012, <a href="http://techcrunch.com/2014/07/29/an-obituary-for-facebook-gifts/">Facebook launched Gifts</a> &mdash; an online shop inside the network for buying and sending small gifts to friends &mdash; with grand visions of challenging Amazon for e-commerce supremacy. When warehousing and shipping physical gifts proved problematic, the network turned to gift cards a year later. But even with its treasure trove of user data, Facebook couldn&rsquo;t get people to buy, and the project was killed in 2014. It turned out users just weren&rsquo;t ready to shop on social media.</p>
<h3 class="red">New Shopping Opportunities</h3>
<p>But networks aren&rsquo;t ready to give up on social commerce just yet. Improved technology to keep users &ldquo;in-app,&rdquo; advances in payment processing and changing consumer attitudes have led to the recent flurry of new options.</p>

<p>Pinterest&rsquo;s new Buyable Pins, unveiled in June, are at the vanguard of recent offerings. Users who click the new blue &ldquo;Buy it&rdquo; button next to select images are shown not just prices but different color and style options. They can then select to pay via Apple Pay or with a credit card, enter shipping information and make the purchase &mdash; all without being redirected to a different site. <a href="https://blog.pinterest.com/en/buyable-pins">Initial partners for Buyable Pins include department store giants Macy&rsquo;s and Nordstrom</a>, plus thousands of smaller retailers, with millions of products available.</p>

<p>Meanwhile, Facebook is poised to take social buying to an even larger audience. After months of beta-testing a buy button of its own on posts from select merchants, the network <a href="http://techcrunch.com/2015/06/10/never-leave/">opened up the program to retailers</a> in June, using the popular Shopify commerce platform, hinting at a possible future rollout to an even wider business audience. Users can can now complete their purchases in-line, without ever leaving Facebook&rsquo;s &ldquo;walled garden.&rdquo; The network&rsquo;s unparalleled access to user data &mdash; and uncanny ability to target posts &mdash; means it would have a huge head start in the social commerce race. Plus, with services like Facebook Messenger payments (the network&rsquo;s new peer-to-peer money-sending service), many users already have payment and address details on file, streamlining the checkout process.</p>

<p>Instagram has also <a href="http://techcrunch.com/2015/06/02/adstagram/#.vnbbsp:VwLH">upped its social commerce game</a>, with a &ldquo;Shop Now&rdquo; button on ads that opens a mini-browser within the app. Whether millennials will <a href="http://www.theguardian.com/media-network/2015/jun/09/instagram-advertising-a-millennials-verdict">welcome this intrusion</a> into their photo feeds remains to be seen, but &mdash; considering that the network has access to parent company Facebook&rsquo;s demographic data &mdash; it&rsquo;s safe to say shopping may one day become a fixture of the Instagram experience.</p>

<p>Twitter, meanwhile, began testing the social-shopping waters nearly a year ago with its own buy button, an initiative spearheaded by former Ticketmaster CEO Nathan Hubbard. Initially rolled out with a small group of brands, artists and charities, the effort was recently <a href="http://www.bloomberg.com/news/articles/2015-04-20/twitter-buy-button-pops-up-for-event-tickets">expanded to include event tickets</a>. Shoppers can also expect to begin seeing Google&rsquo;s new buy buttons on mobile search ads this summer.</p>

<p>As for the critical question of how all this actually brings in money for the networks, details are still being worked out. Pinterest isn&rsquo;t charging retailers for using new Buyable Pins, as of yet. But merchants that want to reach the largest audience &mdash; not just their existing following &mdash; will need to pay to use the network&rsquo;s special ads, known as Promoted Pins. The other social platforms have largely embraced a similar strategy. If the social commerce craze catches on, of course, networks could also take a small cut of each transaction &mdash; the tried-and-true approach behind Apple&rsquo;s iTunes Store and related services.</p>
<h3 class="red">Shoppers Wanted</h3>
<p>Still, the fundamental question remains: If you build it, will they come? So far, it&rsquo;s too early to tell whether the new round of social commerce offerings has won over shoppers. As technology gets slicker, however, and obstacles to buying are lowered (especially on mobile), shopping will almost certainly grow more central to the social media experience. The very same transition, after all, happened in recent years with advertising on social media. Not long ago, the best minds couldn&rsquo;t figure out how to integrate ads into social media, especially given the tiny screens on mobile devices. Today, networks derive much of their overall revenue from so-called &ldquo;native&rdquo; ads that stream by unobtrusively like normal posts and updates. (The ads are so ubiquitous, in fact, that even small businesses are now getting in on the act by using <a href="https://hootsuite.com/ads">simplified ad-buying tools</a>.)</p>

<p>We may be on the edge of a similar leap with social commerce. Consumers are already on social media. Friends are there, too, to share buying ideas and offer input. It seems a logical next step to let people shop while they share updates, pics and videos, when the retail impulse strikes. As <a href="http://blogs.gartner.com/jake-sorofman/headless-commerce-monetizes-moments-of-truth/">social media analyst Sorofman writes</a>, &ldquo;It&rsquo;s an idea that makes storefronts and shopping carts seem, to be kind, a bit quaint.&rdquo;</p>
<hr class="wp-block-separator" />
<p><em>Ryan Holmes is the founder and CEO of </em><a href="https://hootsuite.com"><em>Hootsuite</em></a><em>, social media management tools with 11 million users, including more than 800 of the Fortune 1000 companies. Reach him </em><a href="https://twitter.com/invoker"><em>@invoker</em></a>.</p>

<p><small><em>This article originally appeared on Recode.net.</em></small></p>
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