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Meta will tap AI conversations to personalize ads, raising new privacy questions

The news: Meta will begin using conversations with its AI assistant to personalize ads and feeds across Facebook, Instagram, and WhatsApp starting December 16. There is no way for users to opt out, per TechCrunch.

This is Meta’s most aggressive attempt yet to monetize AI by turning private interactions into ad signals—a reminder of the maxim that if a service is free, the user is the product. 

Why it matters: Conversational intent is more powerful than traditional signals such as likes or follows, since it captures what people are actively considering in the moment—whether that’s hiking boots, vacation plans, or new products. 

Advertisers see potential for sharper targeting and higher ROI, while regulators warn that Meta’s play deepens concerns over surveillance and privacy. 

Skirting regulatory scrutiny: The rollout bypasses the EU, the UK, and South Korea for now due to stricter privacy laws. Meta has already faced scrutiny in Washington, where lawmakers flagged reports of chatbots engaging in inappropriate conversations and impersonating celebrities.

Meta says it won’t use chats about sensitive topics such as religion, politics, health, or sexual orientation, and encrypted WhatsApp and Messenger conversations won’t be touched. Still, conversations in one app can shape ads across other Meta properties if accounts are linked.

Our take: Google also deploys AI to optimize ad performance, but it hasn’t gone as far as tapping Gemini chat history for targeting—showing Meta’s more aggressive stance.

The stakes are high: Meta controls nearly 20% of global digital ad spend, and more than 95% of its over $160 billion in annual revenues comes from advertising. Its ads reached 3.1 billion monthly users in Q2 2025, with US users spending an average of 65 minutes daily on Facebook and Instagram. Even small tweaks in personalization can shift massive sums of ad revenues.

Meta is reframing AI assistants as both a consumer feature and a data engine. If successful, the approach could reshape how brands plan campaigns—and how consumers perceive privacy in an increasingly AI-driven advertising ecosystem.

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