Meta touts AI for Instagram engagement amid lawsuits

Meta’s latest earnings call highlighted a new AI-driven feature that’s reshaping how users interact with Instagram, while the company simultaneously confronts a wave of lawsuits accusing it of encouraging addictive behavior among younger audiences.

AI upgrades boost Instagram session length

During the second‑quarter 2026 financial briefing, Meta disclosed that a substantial update to its Reels ranking system has lifted Instagram sessions by 15 basis points. The change, described as the largest algorithmic overhaul to date, leverages large language models to surface videos users are more likely to watch.

CFO Susan Li explained that the new model tracks the type of videos each person views and then recommends similar content. “The algorithm now offers more personalized content than ever, giving users more direct control over what they see,” Li said. The company reports that more than half of the recommended items in users’ feeds are under a day old, a figure that has doubled compared with a year earlier.

Meta also rolled out its “Muse” family of language models, which classify posts by topic and tone. Li noted that these models have already been applied across the company’s portfolio and that next‑generation recommendation engines are in development for both organic posts and targeted ads.

Lawsuits allege intentional design for addiction

At the same time, Meta faces legal action from 40 U.S. states that claim the firm violates consumer‑protection statutes by encouraging excessive use of its platforms. The complaints assert that internal research warned of mental‑health risks for teenagers, yet the company continued to refine recommendation engines that keep young users engaged for longer periods.

According to the filings, plaintiffs allege the platform’s design contributes to heightened anxiety, depression, and social isolation among its most active users. The lawsuits argue that profit motives have taken precedence over user‑well‑being, especially for teens who are most vulnerable to addictive patterns.

While the AI enhancements appear to improve user experience by delivering fresher, more relevant Reels, the legal challenges raise questions about the broader impact of such technology. The tension between personalization and potential overuse mirrors earlier debates over algorithmic curation on other social networks, where the line between convenience and compulsion can be hard to define.

Analysts note that the financial upside of higher engagement is clear, but the reputational risk associated with ongoing litigation could influence future regulatory scrutiny. As Meta continues to refine its recommendation systems, the company may need to balance growth objectives with increasing calls for transparency and safeguards for younger audiences.

The debate continues.