Meta's algorithm boost drives Instagram usage up, faces teen lawsuits

Meta CEO Mark Zuckerberg said at the Q2 earnings call that Instagram's total user time grew over 10% year-over-year globally, driven by better recommendations. Reels uses faster AI and new systems to analyze longer user activity for accuracy. The upgrade boosted session counts by 15 basis points, with shares and time spent rising. But the algorithm faces legal heat: over 20 US states accuse Meta of using addictive designs to hook teens. CFO Susan Li noted multiple teen cases are set for trial this year, and Meta set aside $2.4 billion for legal costs.