Last week, Pinterest (PINS) reported its first quarter earnings revealing revenue rose 23% year-over-year to $740 million, exceeding analysts' expectations by $40 million, with its adjusted earnings rising to $0.20 per share. Part of its explosive growth can be seen by an influx of Gen Z users by utilizing AI-driven recommendations.

Yahoo Finance Anchors Brian Sozzi and Akiko Fujita are joined by Pinterest CEO Bill Ready at the Milken Global Institute Conference to discuss the company's performance, the future of AI, the potential ban of TikTok, and more.

On the company's use of AI, Ready says: "We now use models that are 100 times larger than the models that we were using a couple of years ago. That led to roughly have a 10 percentage point improvement in relevancy of recommendations we make to our users."

He continues with the benefits AI has brought the company and, in turn, the users of the platform: "We've also been doing things to design our product to create great signal for that AI. So for example, we've really leaned into human curation of scale, so it's not just users coming to Pinterest to shop, they come to Pinterest and curate and put together outfits, put together room designs, and so when those users say 'I put this handbag with this dress and this pair of shoes'...that gives us really great signal to make better and better recommendations to our users by training the AI on that really unique signal, and importantly, it's helping users to do things that help them to take action in their real life..."

Watch the video above to hear the two reasons why Ready says Gen Z is flocking to Pinterest.

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This post was written by Nicholas Jacobino