Snap Inc. has introduced AI‑Sponsored Snaps, a new advertising format that places brand‑controlled AI agents directly into the Chat tab of the Snapchat app. The feature lets users ask questions and receive product recommendations in real time, turning a casual conversation into a live discovery and purchase channel.
The format builds on Snap’s existing Sponsored Snaps, which already deliver 22% higher conversion rates and about 20% lower cost per action. By embedding AI‑powered ads into the chat feed, Snap aims to increase engagement and lift average revenue per user from advertising.
Snap’s AI ecosystem is already deep in its user base. Nearly one billion people use the app each month, and more than half a billion users have interacted with Snap’s AI chatbot since its 2023 launch. In the first quarter of 2026, Snapchatters sent over 950 billion chats, underscoring the volume of conversational traffic that the new format can tap.
Chief Business Officer Ajit Mohan said that conversation is becoming the most valuable real estate in advertising and that AI is accelerating that shift. He added that the new format is designed to feel native to how people already talk, pairing the scale of Snap’s user base with AI‑powered conversations that drive real engagement and action. The alpha launch with Experian demonstrates how brands can use trusted financial insights in interactive chats about credit and money management.
Snap’s move comes as the company pivots toward profitable monetization, following a Q4 2025 earnings report that showed positive net income and improved Adjusted EBITDA. The new ad format is expected to contribute to higher revenue and margin expansion by leveraging high‑margin conversational advertising and the growing Snapchat+ subscription business.
The launch also positions Snap against competitors such as Meta and Google, which are developing their own AI‑driven advertising solutions. Snap has emphasized that the AI‑Sponsored Snaps will be less intrusive than traditional ads, and the company has acknowledged privacy concerns that users may have about AI interactions within private chats.
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