Why Instagram's CEO Just Admitted Defeat (And Where Creators Should Go Instead)
Instagram's CEO Adam Mosseri just dropped a New Year's essay. One of those “here’s where things are heading” pieces that tech CEOs seem to make when they are under pressure.
While he frames it as forward-thinking analysis, what he's really doing is admitting that Instagram has an existential problem—and hoping creators will bail them out.
Here are three key takeaways that matter for content creators and businesses:
1. Instagram is in serious trouble
Let's not mince words: Instagram is heading the way of Facebook, and everyone knows it. The platform's death spiral has been accelerated by a flood of AI-generated content that they seem unable—or unwilling—to stop. Posts from real people are now buried beneath mountains of recycled memes and AI-generated clickbait.
After blaming AI for their decline, Mosseri writes:
"Flattering imagery is cheap to produce and boring to consume. People want content that feels real."
The irony here is almost too much to bear. Instagram literally invented the photo filter. They built an empire on curated, polished, idealized content. And now they're pivoting to "authenticity" because their own algorithm created a disdain for fake content that they can't control.
Mosseri is essentially appealing to content creators to lean into what he calls "the raw aesthetic," hoping it will bring people back to the platform. But this feels like a long shot. Why would creators invest their time and energy into a platform that's already proven incapable of prioritizing real human content?
The truth is, Instagram desperately needs creators to reinvest. But the free distribution they essentially offer as a social media platform is effectively worthless if no one will actually see what you post. And right now, the signal-to-noise ratio on Instagram is abysmal.
2. They're going to take even more of your personal data
You have to read between the lines for this one. Here's what Mosseri says:
"Labeling content as authentic or AI-generated is only part of the solution though. We, as an industry, are going to need to surface much more context about not only the media on our platforms, but the accounts that are sharing it in order for people to be able to make informed decisions about what to believe. Where is the account? When was it created? What else have they posted?"
Translation: they're going to require more verification, more personal information, more data points to distinguish "real" accounts from AI-generated ones.
Instagram already requires your phone number and reads all your DMs. Now you'll probably need to hand over even more personal information just to avoid getting downranked by the algorithm. It's a typical opportunistic data grab from a tech company under pressure.
And don't be fooled by the framing around "transparency" and "helping users make informed decisions." This isn't about user safety—it's about Instagram gaining more leverage over creators and users alike.
Think about what they're really going to be taking: “proof of humanity”, detailed account history, location data, creation dates, posting patterns. This is metadata that can be used to build incredibly detailed profiles of user behavior, which in turn can be monetized through targeted advertising or sold to third parties.
The most concerning part? Creators who refuse to hand over this additional data will likely find themselves shadowbanned or deprioritized by the algorithm. It's a classic power play: comply with our data demands, or lose your reach.
Instagram is essentially using the AI crisis as an excuse to tighten their grip on user data—all while pretending it's for the greater good of "authenticity." It's surveillance capitalism dressed up as platform integrity.
Hopefully it’s not this dark and ends up just being something funny instead like you have to fill out a Captcha before every post, comment, or like. That would really make people happy to be on Instagram 🤣
3. Authenticity is the currency of the new era (but not on Instagram)
Mosseri asserts that AI content is actually increasing demand for content from real humans. I agree with this part. He writes:
"The bar is going to shift from 'can you create?' to 'can you make something that only you could create?' That's the new gate."
This is absolutely true. But here's the problem: Instagram is not the platform where that shift is happening.
Another platform already set that bar years ago: YouTube.
YouTube has always had a higher bar for what performs well. You can't just throw up a 15-second clip and hope it sticks. The platform rewards depth, substance, and actual expertise. In order to get traction on YouTube, viewers have to be willing to sit and watch your video for a few minutes, not a few seconds.
The algorithm favors watch time, which means creators have to actually deliver value to keep people engaged. This creates a natural filter against low-effort content—AI-generated or otherwise.
And here's the kicker: the length of videos on YouTube makes AI much less useful. Sure, AI can generate a 30-second video that looks real enough. But a 20-minute deep dive? A 45-minute tutorial? An hour-long conversation? That's exponentially harder to fake, and even if you could, why would you? The effort and cost required to prompt and edit AI-generated long-form content often exceeds just creating it yourself.
The exodus of content creators to YouTube started way before AI gave us Shrimp Jesus. And the truth is, Instagram started it.
We are collectively tired of fake content in general. It's not the way it's made that people reject—it's the intent behind it. Take the nutrients out of food and people will still eat it for a while, but eventually they'll get hungry and look elsewhere.
Value drives modern media consumption.
If you're the person who can create gold, are you going to try to sell it in the Walmart of social media? Do you toss it onto the pile and hope someone finds it? Or do you go where people are actively looking for something valuable?
Instagram is the bargain bin. TikTok is the dumpster in the parking lot. YouTube is the specialty shop where people go when they want something real. And now that the collective delusion of the Instagram era is coming to a painful end, real is all we have left.
The Bottom Line
Whether or not Mosseri figures out how to save Instagram from its death spiral remains to be seen. But it may already be too late—the real value is already migrating somewhere else entirely.
So while Instagram and TikTok race to label AI content and rebrand their slop machines, YouTube quietly remains the place where real, valuable, authentic content is being created—because the format itself is a natural defense against synthetic garbage.
If you're a content creator with something unique to say, or a business that isn't just selling t-shirts, YouTube is where you belong. Forget about getting views and followers fast. That's low-hanging fruit that short-form platforms dangle in front of people to get them invested.
Ditch the sh*tshow on Meta's platforms. Get on YouTube. Get there now.
Contact me if you want to learn more about the benefits of being on YouTube as a business and how to do it right so it aligns with your tangible goals.
