Meta Expands AI Monetization: Conversations with Meta AI to Personalize Ads on Facebook and Instagram

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Image Credit: Meta CEO Mark Zuckerberg holds a smartphone as he makes a keynote speech at the Meta Connect annual event at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024. Manuel Orbegozo | Reuters

Meta Platforms, the parent company of Facebook, Instagram, WhatsApp, and Messenger, has announced a significant change to how it utilizes artificial intelligence (AI) for advertising interactions. Starting December 16, 2025, Meta will begin incorporating data from users’ text and voice conversations with its AI assistant, Meta AI, to personalize ads, content recommendations, and social media feeds. This update aims to deepen ad relevance and user engagement by integrating AI conversation data with existing signals such as likes, shares, and follows.

Meta’s AI integration is already widespread, with over one billion active monthly users engaging with its generative AI tools across social media platforms. Users prompt Meta AI for help with tasks ranging from planning vacations to product inquiries and daily life questions. By analyzing these rich AI interactions, Meta plans to refine advertising and content delivery so users receive ads and posts more closely aligned with their interests.

How Meta Will Use AI Conversations for Ads

Beginning December 16, AI chats on Facebook, Instagram, Messenger, and connected devices like Ray-Ban smart glasses will feed into personalized ad targeting algorithms. For example, if a user discusses hiking with Meta AI, the platform might display hiking gear ads, hiking-related group suggestions, or trail recommendations in Reels and feeds. This data will complement existing behavioral signals to enhance ad effectiveness.

Christy Harris, Meta’s Privacy and Data Policy Manager, explained that AI-generated data “will simply become another input that influences the personalization of feeds and ads.” However, sensitive subject discussions, such as those involving sexual orientation, political beliefs, religious views, health, racial or ethnic background, philosophical opinions, and union membership, will be excluded from ad targeting to protect user privacy.

No Opt-Out for AI-Based Ad Personalization

Meta will notify users of these changes starting October 7 through emails and in-app alerts. Importantly, users will not be able to opt out of AI-conversation-driven ad personalization unless they stop using Meta AI altogether. However, users can still control and adjust the types of ads they see through tools like Ad Preferences and feed controls to limit exposure to specific topics or block advertisers.

The policy applies globally but excludes countries with stricter privacy regulations, namely the European Union, United Kingdom, and South Korea, where Meta will not use AI chat data for advertising purposes due to legal restrictions.

A Strategic Move to Monetize AI Investments

This expansion into AI-driven ad personalization is a strategic monetization step as Meta invests heavily in AI technology. The company reportedly allocated $60-65 billion for AI development in 2025 alone. By leveraging the vast amount of information generated from AI interactions, Meta aims to enhance its core business of hyper-targeted advertising more effectively than ever before.

CEO Mark Zuckerberg has suggested future revenue models could include paid recommendations or subscription tiers for enhanced AI access. While Meta currently offers AI services for free, integrating AI chat data into advertising enables a new revenue stream that ties AI innovation directly to the company’s advertising ecosystem.

Impact on User Experience and Privacy

Meta argues that using AI conversations will improve the relevance of ads and content, making social media experiences more tailored and efficient for users. For example, Facebook Reels and Instagram posts could adapt dynamically based on AI chat topics, offering personalized recommendations and ads related to users’ interests discussed with Meta AI.

Still, the lack of a full opt-out option for AI data usage and the breadth of data included raise concerns among privacy advocates. Meta’s commitment to exclude sensitive topics from targeting offers some safeguards, but the expanded use of AI-generated data to personalize ads underscores the evolving balance between innovation, monetization, and privacy regulation.

ALSO READ: Meta’s Billion-Dollar AI Bet: Building the Future of Superintelligence

Summary

  • Meta will use AI chat conversations starting December 16, 2025, to personalize ads and content on Facebook, Instagram, and related platforms.
  • Over 1 billion users interact with Meta AI monthly, providing rich data for ad targeting.
  • Sensitive conversation topics are excluded from ad personalization.
  • Users cannot opt out of AI chat ad targeting; however, ad preferences and feed controls remain.
  • The update excludes the EU, UK, and South Korea due to privacy laws.
  • This initiative supports Meta’s goal to monetize its $60-65 billion AI investments through enhanced hyper-targeted advertising.
  • Meta plans to notify users starting October 7, 2025, about the new policy.

This latest policy marks a significant step in how social media companies are evolving with AI, turning conversational data into advertising assets while navigating complex privacy landscapes and user expectations.

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The Villpress Insider team is a collective of seasoned editors and industry experts dedicated to delivering high-quality content on the latest trends and innovations in business, technology, artificial intelligence, advertising, and more.