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Snapchat is betting that the future of advertising lies in conversation. The social media platform has launched AI Sponsored Snaps, a new ad format that embeds AI-powered brand interactions directly into its chat feature where users already spend most of their time.
The timing makes sense. Snapchat users sent over 950 billion chats in the first quarter of 2026 alone, and more than half a billion users have already engaged with My AI since its launch. The platform is essentially doubling down on where its users already are – in conversations.
How AI Sponsored Snaps work
The new format allows brands to deploy their own AI agents on Snapchat’s platform. Users can interact with these agents directly within chat conversations to:
- Discover new products and services
- Ask questions about brands
- Get personalized recommendations
- Make purchases without leaving the conversation
The format builds on Snapchat’s existing Sponsored Snaps, which already show strong performance metrics. Current Sponsored Snaps drive 22% more conversions with nearly 20% lower cost per action compared to other ad formats, and generate twice as many conversions per full-screen ad view.
Why conversational ads matter now
The shift toward conversational advertising reflects broader changes in how people interact with technology. As AI becomes more sophisticated, users increasingly expect to engage with brands through natural dialogue rather than static ads.
“Conversation is becoming the most valuable real estate in advertising,” said Ajit Mohan, Chief Business Officer at Snap Inc. “AI is accelerating that shift, turning chat into the place where people discover products, ask questions, and make decisions in real time.”
For brands, this represents direct access to Snapchat’s nearly one billion monthly active users through a format that feels native to how people already communicate. The approach could drive results across the entire marketing funnel, from initial brand discovery to final purchase.
Experian leads the charge
Snapchat is launching the alpha version in partnership with Experian, the data and technology company. The partnership will focus on financial education and credit management services delivered through conversational AI.
“This partnership reflects our commitment to meeting consumers where they are – with trusted insights that empower smarter financial decisions,” said Steve Hartmann, Head of Integrated Marketing at Experian. The company sees the format as a way to make financial education more accessible by integrating it into everyday conversations.
The Experian partnership is particularly strategic given the complexity of financial services and the value of personalized guidance in that space. If the format works well for financial education, it could easily expand to other industries where personalized advice drives purchasing decisions.
The bigger picture for social commerce
AI Sponsored Snaps represents Snapchat’s latest move in the competitive social commerce space. While platforms like Instagram and TikTok have focused heavily on shopping features and influencer partnerships, Snapchat is betting on AI-powered conversations as its differentiator.
The approach could give Snapchat an edge in capturing purchase intent at the moment it emerges in conversation. Rather than interrupting users with traditional ads, the format lets brands become part of the natural flow of chat – potentially leading to higher engagement and conversion rates.
As more brands join the alpha program, the success of AI Sponsored Snaps will likely depend on how well these AI agents can maintain natural conversations while still driving business outcomes.
