The news: Meta is developing agentic AI tools, including one for shopping that it plans to integrate within Instagram, potentially boosting its ability to compete with TikTok Shop for ecommerce.

• A personalized AI assistant, codenamed Hatch, will be powered by Meta’s Muse Spark model and will be a consumer version of OpenClaw, sources told The Information.
• A separate agent could let Instagram users tap on items in Reels or feeds, navigate to external sites, and make purchases inside the platform. The feature could launch by Q4 of this year.

This update comes a week after Meta raised its capital expenditure forecast by $10 billion—it now expects to spend up to $135 billion for the year—driven by surging AI costs.

What it means: Meta wants to turn Instagram into a more seamless shopping destination, which could change how brands show up in the app and help it compete for social shoppers. We expect that about half (47.2%) of US social buyers will shop on Instagram this year, compared with TikTok’s 51%.

• The new AI tools could make product discovery more immediate and actionable if it reduces friction in the buying process. Brands should adapt organic content with commerce in mind.
• These offerings also raise the stakes for visual content quality. Since AI is identifying products directly from images and videos, marketers will need content that’s easily “readable” inside feeds.

Looking ahead: Built-in AI shopping assistants could also help guide users toward products in a more individualized way.

• While this could reduce in-app shopping friction and encourage more social buying, brands may have less control over the path to purchase.
• Standing out may depend more on how well products align with users’ algorithms and interests in the moment, rather than just paid targeting.

Recommendations for brands: Prepare for AI-led social shopping experiences by treating Instagram content as both a discovery asset and a point of sale.

• Ensure posts and Reels clearly showcase items, with strong visuals, product specs, and details.
• Invest in product-forward creative that highlights use cases quickly.
• Align content with trending formats, seasonal demand, and audience behaviors to increase the likelihood of being surfaced.