Introduction to AI-Powered Chat Ads

Snapchat, with its nearly 950 million users, has introduced AI Sponsored Snaps, allowing users to interact directly with brands’ AI agents. This feature enables users to engage with Sponsored Snaps, which are the ads brands place directly on Snapchat’s main chat tab. Prior to this launch, users couldn’t engage with ads, but now, with the help of AI, they can ask brands questions and get recommendations without leaving the app.

Conversation as the New Real Estate in Advertising

Ajit Mohan, Snap’s chief business officer, stated that conversation is becoming the most valuable real estate in advertising. He believes that AI is accelerating this shift, turning chat into the place where people discover products, ask questions, and make decisions in real-time. The real opportunity, according to Mohan, isn’t just putting ads into those environments but designing formats that feel native to how people already talk.

How AI Sponsored Snaps Work

AI Sponsored Snaps allow users to ask brands questions and get recommendations without leaving the app. For instance, Experian, the credit-monitoring company, is the first brand to partner with Snap for the initial launch. Users will be able to ask Experian questions about credit scores, loans, credit cards, and spending habits, and Experian’s AI agent will respond like a normal chat, guiding users toward its services.

AI Coming for the Salesforce

The launch of AI Sponsored Snaps could be the first sign that AI chatbots are coming for the salesforce. These AI agents aren’t designed to answer random questions or handle basic inquiries; rather, they are built to help users discover products and services, provide personal recommendations, and ultimately close the sale. As Mohan said, AI Sponsored Snaps are positioned to drive full funnel outcomes from top of the funnel discovery and engagement to lower funnel installs and purchases, roles typically reserved for humans.

Practical Takeaways

For businesses, this means rethinking how consumers discover and interact with products. Features like AI-powered chat ads highlight a broader shift toward conversational commerce, where engagement, recommendations, and purchasing decisions increasingly happen within the same digital environment. As artificial intelligence becomes more deeply integrated into social platforms and digital advertising, companies must adapt to this new landscape.