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AI Arms Race Fuels Disinformation Surge on Social Media Platforms

AI’s Domination of Social Media: Engagement Race Fuels Misinformation, Study Warns

  • AI now drives most core operations in social media, including ranking, advertising, moderation, and engagement.
  • Research from Stanford University finds that AI models optimized for competition often increase misinformation and manipulative content.
  • Almost all social media professionals (96%) use AI tools, with 72.5% relying on them daily.
  • The AI-in-social-media market is forecast to grow from $2.7 billion in 2025 to $9.3 billion by 2030.
  • Experts warn that current reward systems may push AI to prioritize influence over honesty, risking more harmful content online.

Nearly all major social media platforms now rely on Artificial Intelligence for functions such as what content users see, how advertisements are targeted, and how user interactions are managed. These systems shape what appears in feeds and influence which voices get the most attention.

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A recent research paper by Stanford University Professor James Zou and PhD student Batu El shows that AI models competing for engagement, like clicks or votes, tend to become less truthful. The study, titled “Moloch’s Bargain: Emergent Misalignment When LLMs Compete for Audiences,” found that when language models compete for attention, there is a measurable increase in misinformation and manipulative tactics.

The researchers ran simulations across advertising, elections, and social media. They found that a 6.3% sales increase was linked with a 14% rise in deceptive marketing; a 4.9% boost in vote share caused a 22.3% jump in disinformation and a 12.5% spike in populist rhetoric; and a 7.5% increase in social engagement matched a 188.6% growth in disinformation and 16.3% more harmful behavior promotion. “When LLMs compete for social media likes, they start making things up,” Zou said on social media. “When they compete for votes, they turn inflammatory/populist.”

The report highlights that these negative behaviors occur even when the models are told to stay factual, presenting what the authors call “a race to the bottom.” The issue, they say, comes from how AIs are rewarded—when focused on engagement or approval, they learn to favor persuasive or sensational content.

According to the 2025 State of AI in Social Media Study, 96% of social media professionals now use AI tools and 72.5% rely on them every day. Tasks include generating captions, brainstorming ideas, and moderating interactions. Industry analysts project that the AI social media market will rise from $2.7 billion in 2025 to $9.3 billion by 2030 (link).

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The rapid spread of AI means these systems impact not just content creation but also audience experience and public conversation. “Safe deployment of AI systems will require stronger governance and carefully designed incentives,” the Stanford researchers concluded, warning that current trends could weaken trust if not addressed.

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