Snapchat Rolls Out Sponsored AI Agents in Chat

In a move that was perhaps inevitable, Snapchat is diving headfirst into conversational advertising with its new AI Sponsored Snaps. This feature allows brands to create AI agents that will appear in the app's Chat tab, offering a new way for companies to connect with users. Essentially, it's branded chatbots designed to integrate directly into your conversations.

These AI Sponsored Snaps will be clearly marked with a light gray "Ad" notation next to the brand's name. Once a user opens the chat with one of these agents, they can ask questions related to the brand. For instance, Snapchat showcased an example with its initial partner, Experian. The AI agent was designed to help users with queries about saving money, improving credit scores, and exploring loan or credit card options.

The underlying goal, of course, is to guide users toward actions that benefit the sponsoring brand, likely through offers for financial products or similar services. This raises the question of whether these specialized AI agents offer a better experience for consumers than asking general-purpose chatbots like Google's Gemini or Anthropic's Claude the same questions. It’s possible the answer is no, but companies are betting on user engagement regardless.

Snapchat's Chief Business Officer, Ajit Mohan, stated in a press release that "Conversation is becoming the most valuable real estate in advertising." He added that AI is accelerating this shift, making chat the primary place for real-time product discovery, questions, and decision-making. The focus, he explained, is on designing ad formats that feel natural within the flow of user conversations.

This initiative builds on the significant adoption of Snapchat's existing My AI feature, which has seen over half a billion users engage with it since its launch three years ago. Despite some early controversies, including the AI offering questionable advice, the platform seems confident in its ability to leverage AI for advertising purposes.