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Meta to sell ads based on data in your AI chats

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Meta Platforms has announced a significant update to its privacy policy: Starting December 16, 2025, the company will use data from users’ interactions with its AI chatbot, Meta AI, to personalize ads and content recommendations across its apps, including Facebook, Instagram, and WhatsApp. This means conversations—whether text or voice—with Meta AI could influence the Reels, posts, and ads you see, based on topics discussed, such as vacation planning leading to travel gear suggestions. With over 1 billion monthly active users for Meta AI, this change aims to make recommendations “more relevant” but has sparked concerns over data usage, as there’s no opt-out option for most users.

For privacy advocates, social media users, and advertisers, this policy shift represents Meta’s deepening monetization of AI tools, following similar moves by OpenAI (e-commerce in ChatGPT) and Google (ads in AI Overviews). While Meta emphasizes transparency with pre-rollout notifications and exclusions for sensitive topics like health or politics, it underscores the tension between personalization and data privacy in an AI-driven ecosystem. Let’s break down the update, how it works, and what it means for users.

The Policy Update: From AI Chats to Ad Targeting

Meta’s core revenue—$150 billion annually from ads—relies on building detailed user profiles from likes, posts, and follows. Now, AI interactions will join this mix, providing “another powerful signal” for tailoring experiences. The change applies to:

  • Text and Voice Chats: Queries like “best hiking boots” could trigger related Reels or ads on Instagram.
  • Cross-App Personalization: If accounts are linked, a Facebook AI chat might influence Instagram feeds.
  • Exclusions: Sensitive categories (religion, sexual orientation, politics, health, race/ethnicity) won’t inform ads, per existing policies.

Meta’s privacy policy manager, Christy Harris, stated during a September 30, 2025, briefing: “People already assumed we were using this data, but we want to be super transparent.” Notifications will start next week, with the update effective December 16. WhatsApp chats are exempt unless accounts are linked, preserving end-to-end encryption.

This builds on Meta AI’s launch in April 2025, now with 1 billion monthly users across apps—rivaling ChatGPT’s scale.

How It Works: Seamless Integration Without Opt-Out

The system processes AI chats in real-time, feeding insights into Meta’s algorithms for:

  • Content Recommendations: More Reels or groups matching discussed interests.
  • Ad Targeting: Personalized promotions, e.g., family vacation chats leading to travel ads.

Users can adjust ad preferences in settings, but can’t fully opt out of AI data usage. Voice chats from Ray-Ban Meta glasses will also contribute, expanding the data pool.

Comparison to peers:

CompanyAI Data for Ads?Opt-Out?Sensitive Topics Excluded?
MetaYes (Dec 2025)NoYes (health, politics, etc.)
OpenAINo (e-commerce focus)N/AN/A
GoogleYes (AI Overviews)LimitedPartial

Meta insists: “No plans imminently for ads in AI products,” but CEO Mark Zuckerberg hinted at future monetization like paid recommendations.

Why This Matters: Privacy vs. Personalization in AI Era

Meta’s update amplifies concerns in a world where AI chats feel intimate—users discuss relationships, health, or finances with bots like therapists. With no opt-out, it raises “you are the product” critiques, especially as Meta AI’s 1 billion users generate vast data troves. Privacy groups like EFF warn of “harmful content recommendations” from personal queries.

For users, it means more relevant feeds but less control over AI-influenced ads. Advertisers gain precise targeting, potentially boosting Meta’s $150 billion revenue. Regulators (EU’s AI Act, India’s DPDP) may scrutinize, demanding stronger consents.

Broader context: Similar to Amazon’s Alexa+ ads and Google’s AI search monetization, it’s part of AI’s commercialization wave.

Conclusion: Meta’s AI Ad Pivot – Relevant or Invasive?

Meta’s plan to sell ads based on data in your AI chats from December 16, 2025, supercharges personalization but erodes privacy boundaries, with no opt-out for most data. Excluding sensitive topics offers some safeguard, but it spotlights AI’s dual role as helper and data miner. As notifications roll out, users must weigh relevance against control—Meta’s 1 billion AI users are now a richer ad goldmine. CNBC

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