Instinct AI Agent Raises $1B—but Is It Worth the Risk?

Instinct, an invite-only AI agent operating via iMessage and WhatsApp, is making waves for its ability to handle complex tasks like booking reservations and managing flights. However, its reported data privacy issues and operational risks raise questions about whether the productivity gains outweigh the downsides.

A New AI Agent in Private Beta

Instinct, an AI agent currently in private beta, launched in February and operates exclusively via iMessage and WhatsApp. According to WIRED, it is invite-only and designed to handle complex tasks like booking reservations and managing flights. The agent connects to users’ email, calendar, and messaging apps, but its restricted access has not prevented criticism or operational issues.

Productivity Gains and Usability

A WIRED reporter tested Instinct during a work trip to Venice, Italy. The agent successfully booked reservations, detected flight changes, and rebooked tickets to save money. In one instance, Instinct identified a flight rescheduling by Alaska Airlines 90 minutes earlier, qualifying the reporter for a full refund. The agent then canceled the original ticket and rebooked a one-way return to San Francisco, reportedly saving roughly $550.

Instinct’s interface was praised for its simplicity. Unlike other AI agents, such as Lindy—which the reporter noted sent frequent updates and joined Zoom calls without permission—Instinct limits its interactions to essential messages. According to WIRED, this approach makes it less intrusive while still providing functional support.

Risks and Unintended Consequences

Despite its capabilities, Instinct has faced criticism for data privacy and operational issues. WIRED reported that some users found Instinct retained copies of their inboxes even after attempting to disconnect it. Additionally, the agent’s API interactions led to disruptions, such as a venture capitalist being banned from Resy after Instinct pinged its API roughly 200 times per hour.

Financial mishaps have also occurred. In one case, Instinct canceled a delayed DoorDash order, causing the reporter to forfeit $64. The reporter noted that Instinct often apologized for errors but did not offer compensation for losses. Instinct’s Terms of Service also state that the company may use user conversations to train its AI models, raising further privacy concerns.

The agent did demonstrate some utility in security. For example, it identified a phishing scam in an email from a friend inviting the reporter to a backyard BBQ.

Funding and Competition

Instinct is reportedly raising $1 billion in funding, which would value the company at $10 billion. This follows $350 million already raised, reflecting investor confidence in AI agents as a productivity tool.

Competition in the AI assistant space is intensifying. Meta’s Muse, for example, became the most popular free app in Apple’s App Store, with over 900,000 downloads. However, Muse also faced criticism after launching with a significant security vulnerability. According to WIRED, Muse can book restaurant reservations, though some of those calls are reportedly made by humans in call centers rather than AI.

AI Agents: Productivity vs. Risks

The rise of AI agents like Instinct and Muse reflects broader trends in AI-driven productivity tools. Companies are investing heavily in AI infrastructure, as seen in debates over data center energy use and climate impact. For example, Oracle recently invoked force majeure for a data center project in New Mexico due to energy delays, highlighting the financial and logistical challenges of scaling AI infrastructure.

However, the effectiveness of AI agents remains debated. Booking.com’s chief business officer recently expressed regret over building AI tools in-house, as frontier models have caught up to proprietary capabilities. This underscores the challenge of balancing innovation with practical, user-centric solutions.

What this means

LazyFounders analysis — our interpretation, not reported fact.

Instinct’s launch and funding ambitions highlight the growing excitement around AI agents as the next frontier of productivity tools. For founders and operators, this is a double-edged sword. On one hand, the ability to automate administrative tasks—like booking flights or managing calendars—could unlock significant efficiency gains for users. The fact that Instinct operates within existing messaging platforms like iMessage and WhatsApp is a smart design choice, reducing friction and making adoption easier.

On the other hand, Instinct’s reported issues—data retention, API bans, and financial missteps—serve as a cautionary tale. For startups building similar tools, the risks of over-automation are real. Users may trust AI agents with mundane tasks, but errors can lead to frustration, financial loss, or even reputational damage. The reporter’s experience with Instinct canceling a DoorDash order without resolving the issue, for example, shows how quickly convenience can turn into annoyance.

Privacy is another critical concern. Instinct’s Terms of Service, which allow it to use user conversations for AI training, may deter users who are increasingly wary of how their data is handled. For founders, this means prioritizing transparency and control—users should always know what data is being used and have the ability to opt out.

Finally, the competition in this space is heating up, with Meta’s Muse already achieving viral adoption. However, Muse’s security vulnerabilities and Instinct’s mixed reviews suggest that the market is still immature. For now, AI agents may be better suited for low-stakes tasks rather than mission-critical operations. Founders should focus on solving specific, high-value problems rather than chasing broad automation, at least until reliability and trust improve.

Key takeaways

• Instinct is an AI agent designed for complex tasks like booking reservations and managing flights via messaging apps.
• The company is seeking $1 billion in funding, which would value it at $10 billion.
• Users report mixed experiences, including data retention issues and unintended consequences like API bans.
• Competing AI assistants like Meta’s Muse are gaining traction but face their own challenges, such as security vulnerabilities.
• AI agents highlight the tension between productivity gains and risks like privacy, reliability, and unintended disruptions.

FAQ

What is Instinct?

Instinct is an invite-only AI agent that operates via iMessage and WhatsApp. It is designed to handle tasks like booking reservations, managing flights, and interacting with calendar and email apps.

How does Instinct differ from other AI assistants?

Instinct is integrated into existing messaging platforms like iMessage and WhatsApp, which makes it more accessible for users. Unlike some competitors, it limits its interactions to essential messages, reducing intrusiveness.

What are the risks of using Instinct?

Users have reported issues like data retention, API disruptions, and unintended financial consequences. Instinct’s Terms of Service also allow it to use user conversations for AI training, raising privacy concerns.

How much funding is Instinct raising?

Instinct is reportedly raising $1 billion in funding, which would value the company at $10 billion. This follows $350 million already raised.

What are some alternatives to Instinct?

Meta’s Muse is a popular alternative, though it launched with security vulnerabilities. Other AI assistants, like Lindy, offer similar functionality but have faced criticism for being overly intrusive.

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