BuzzFeed’s AI Reboot Pitch Fails to Impress at SXSW Amidst Financial Woes

The American media firm BuzzFeed, widely recognized for its quizzes, listicles, and its past Pulitzer-winning journalism, is attempting to redefine itself for the age of artificial intelligence. This is, at any rate, what they are proposing.

During the SXSW conference in Austin, BuzzFeed CEO and co-founder Jonah Peretti unveiled the company’s latest media venture: Branch Office, a new spin-off dedicated to exploring AI within consumer applications focused on fostering creativity and connection.

Peretti clarified that this new entity builds upon BuzzFeed’s years of AI experimentation, detailing this in a hesitant presentation marred by initial slideshow issues and app demonstrations that were met with either quiet or faint, awkward laughter.

Peretti stated, “We’ve been secretly developing this for over a year, gaining significant insights from the BuzzFeed platform regarding emerging AI formats.” He added, “Leveraging AI offers a path to connect individuals and cultivate communities centered on shared cultural elements, preferences, and collective experiences.”

Bill Shouldis, BuzzFeed’s product director and Branch Office founder, showcased two of the firm’s latest applications: BF Island and Conjure.

The initial offering, BF Island, functions as a group chat platform, providing AI-powered tools for photo alteration and editing. While the technology itself isn’t revolutionary, that isn’t its primary focus.

Its principal attribute isn’t the AI toolkit, but rather the curated in-app collection of internet trends and memes, compiled by an editorial team. This resource aims to encourage users to generate AI photos drawing inspiration from fleeting trends such as the McDonald’s CEO sampling a burger or the “frame-mogging” controversy. (For those unfamiliar with these, the target demographic is likely the “very online” crowd.)

Conjure, the second application, resembles BeReal—the ephemeral daily photo app—but seems to direct users to capture daily images of subjects other than themselves. (It’s worth noting that BeReal ultimately failed to sustain interest, being acquired by Voodoo after declining in popularity.) During the demonstration, for example, the prompt “What lies between the trees and the moon?” guided users to photograph the night sky. Eerie visuals then appeared on screen, culminating in a whispered question: “What will you conjure?”

The concept was unclear to us, and evidently, the audience shared this confusion. Following the demonstration, a solitary cough punctuated the silence, succeeded by awkward chuckles.

Shouldis subsequently mentioned that Conjure also incorporates AI, with the app featuring an “AI spirit as its CEO.” (One might wonder, again, what exactly this implies?)

Peretti additionally unveiled Quiz Party, a social application enabling users to complete BuzzFeed quizzes with friends and share their outcomes.

This uninspiring presentation from BuzzFeed occurred mere days after the media corporation disclosed “substantial doubt” regarding its operational continuity and revealed ongoing strategic discussions aimed at resolving its liquidity issues. The company, having reported a net loss of $57.3 million last year, announced its intention to concentrate on its Studio IP and these new AI applications during the current year.

Nevertheless, even the technologically astute SXSW attendees remained unconvinced.

During the post-presentation Q&A, an attendee raised the point that BeReal faced difficulties in user retention once its novelty faded. The question was posed: how would an app like Conjure address similar retention challenges?

Shouldis responded that the app was designed to evolve, “featuring various developments beyond its current state.” He mentioned the possibility of incorporating elements such as video, audio, and Claude Code prototyping to foster community.

The core concept underpinning these new applications holds merit: AI facilitates accelerated software development, enabling companies to iterate more rapidly and sustain user engagement.

Peretti observed, “In essence, software is becoming the new content.”

Naturally, user acquisition is a prerequisite for iteration. BuzzFeed’s new applications appear to prioritize AI’s capabilities over user desires concerning AI, a strategy unlikely to yield success.

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