BuzzFeed launches AI-driven apps to unlock new revenue streams

BuzzFeed, the U.S.-based media company widely recognised for its quizzes, listicles, and, at one point, a Pulitzer Prize-winning journalism arm, is attempting to reshape its identity for the AI-driven era. At least, that is the vision being presented.

During the SXSW conference in Austin, BuzzFeed co-founder and CEO Jonah Peretti unveiled the company's latest initiative: a spin-off called Branch Office, focused on exploring artificial intelligence through consumer-facing applications centred on creativity and social interaction.

According to Peretti, the new venture builds on years of experimentation BuzzFeed has conducted with AI technologies. His presentation, however, began with technical hiccups, including slideshow issues, and then transitioned to app demonstrations that elicited minimal audience response, ranging from silence to light, polite reactions.

"We've been working on this secretly for over a year, and we've learned a lot from the BuzzFeed platform about what is coming with new kinds of AI formats," Peretti said. "Using AI is the way of connecting people, building community around these pillars of culture, taste, and community."

Bill Shouldis, BuzzFeed's director of product and the founder of Branch Office, introduced two of the company's upcoming apps: BF Island and Conjure.

The first app, BF Island, is designed as a group chat platform that incorporates AI-powered tools for photo editing and modification. While such capabilities are not entirely new, the app's focus lies elsewhere. Its standout element is an in-app collection of trending internet content and memes curated by an editorial team. This library is intended to inspire users to create AI-generated images tied to fast-moving trends, such as viral moments involving a McDonald's CEO sampling a burger or online discussions like the so-called "frame-mogging" drama—references aimed at highly online audiences.

The second app, Conjure, draws comparisons to BeReal, the once-daily photo-sharing app, but with a different approach. Instead of encouraging selfies, it prompts users to capture images in response to creative cues. In one demonstration, users were asked, "What lies between the trees and the moon?" prompting photos of the night sky. The presentation included a sequence of eerie visuals followed by the phrase, "What will you conjure?"

The concept, however, left the audience puzzled. Following the demo, the room fell quiet, interrupted only by a single cough and some uneasy laughter.

Shouldis added that Conjure also incorporates AI, describing it as having an "AI spirit for a CEO," a statement that further contributed to the confusion around the app's purpose.

Peretti also revealed another product called Quiz Party, a social platform where users can take BuzzFeed-style quizzes together and share their results with friends.

The lukewarm reception of these announcements comes shortly after BuzzFeed disclosed that it faces "substantial doubt" about its ability to continue operating as a business. The company is engaged in strategic discussions to address its liquidity issues. Reporting a net loss of $57.3 million last year, BuzzFeed indicated that its focus moving forward would be on Studio IP and the development of AI-driven applications like those presented.

Even among the tech-savvy audience at SXSW, scepticism remained evident. During the Q&A session, one attendee highlighted the challenges faced by BeReal, particularly its difficulty in maintaining user engagement once the initial novelty wore off. The question raised was how Conjure would avoid encountering similar retention issues.

Shouldis responded by suggesting that the app would continue to evolve, incorporating additional features such as video, audio, and possibly prototyping tools like Claude Code to foster stronger community engagement.

The underlying idea behind BuzzFeed's new direction is not without merit: AI can accelerate software development, allowing companies to iterate more quickly and adapt to user behaviour.

"In a way, software is the new content," Peretti said.

However, attracting users remains the first challenge. The new apps appear to emphasise what AI technology is capable of rather than focusing on what users actually want to do with it—a mismatch that could make long-term success difficult.