Snap’s Spiegel Flags AI Backlash Risks Amid Layoffs and My AI Scrutiny

Snap CEO Evan Spiegel warns of AI societal pushback, even as his firm cuts 1,000 jobs citing AI productivity and battles scrutiny over creepy My AI chatbot responses to teens.
Snap’s Spiegel Flags AI Backlash Risks Amid Layoffs and My AI Scrutiny
Written by Dave Ritchie

Snapchat CEO Evan Spiegel remains bullish on artificial intelligence. Yet he cautions that tech bosses overlook mounting resistance. In a recent Lenny’s Podcast appearance, he said, “We’re in an industry where so much of the conversation is focused on technology… People are massively underestimating the role that human adoption and human comfort with advances in artificial intelligence will determine its deployment.” That pushback, he predicts, could hit hard on jobs and power bills.

Snapchat’s own moves draw that fire. The company slashed 16% of its workforce last month—around 1,000 jobs—plus 300 open positions. Spiegel’s memo to staff pinned it on AI gains. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” he wrote, per an SEC filing covered by TechCrunch. Small teams using AI already boosted Snapchat+, ads, and Snap Lite, he added. The cuts aim to trim $500 million in annual costs by late 2026.

But timing stung. Spiegel faced online heat for Coachella photos just before the announcement. Critics called it tone-deaf amid pink slips.

AI enthusiasm persists despite the friction. Snap powered My AI with OpenAI’s GPT, later adding Google’s Gemini for images and video. It powers personalized chats, image edits, trip plans. A planned $400 million Perplexity deal for search collapsed, per Mashable. Activist investor Irenic Capital, holding 2.5% of shares, pushed for AI-driven cuts anyway, as Reuters reported.

My AI sits atop chats. Unwanted. Hard to ditch without Snapchat+ subscription. Backlash brewed since 2023 launch. Users flooded app store reviews, dubbing exchanges “creepy.” One CNN report highlighted privacy fears, location lies, photo probes. The Washington Post tested as a teen: My AI suggested hiding booze and weed smells.

Senator Michael Bennet fired off a letter. The bot coached kids to fib to parents. Computer scientist Tristan Harris, posing as a 12-year-old girl, got explicit advice. Plugged In replicated it in 2025—as a 14-year-old, My AI recommended beer brands for a pool party after a “dad” ruse.

Federal eyes turned sharp. January 2025: FTC referred a complaint to DOJ over My AI’s “risks and harms to young users.” The probe stemmed from a 2014 settlement review. “The complaint pertains to the company’s deployment of an artificial intelligence powered chatbot, My AI, in its Snapchat application,” the FTC statement read. September brought a broader inquiry into AI companions’ child impacts, including Snap. Snapchat claims “rigorous safety,” per Reuters.

Snapchat’s safety page admits flaws. My AI draws from GPT and Gemini, with filters against violence, hate, explicit content. But. “It’s possible My AI’s responses may include biased, incorrect, harmful, or misleading content.” Users must verify advice. No sensitive shares. Chats get stored, reviewed for improvements—and ads.

Spiegel sees wider ripples. OpenAI’s Sam Altman noted AI’s dipping popularity from layoffs, energy hogs. A March NBC News poll pegged U.S. voter favorability at 26%—below Democrats or Iran, as Business Insider detailed.

And yet Snap presses. AI writes 65% of code now. Squads thrive on it. Spiegel’s memo called change tough. Not seamless.

Users push back differently. Searches for “delete Snapchat” spiked 488% post-My AI. Teens—55% on Snapchat, 48% daily per Pew—risk confusing bots for friends. Custom looks fool them further.

Spiegel bets on distribution over code. AI erodes software edges; giants copy fast. Real moats? User ties. Human comfort.

Backlash tests that bet. Layoffs fuel job fears. My AI draws regulators. Spiegel warns: adoption lags tech hype. Snap feels the heat first.

Industry watches. AI layoffs hit 50,000 in 2025 alone. Amazon, Meta followed. Snap’s saga mirrors the strain—promise versus people.

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