# Instagram Reels growth and AI tools > Live situation record from CLSTR: https://clstr.news/situations/instagram-reels-growth-and-ai-tools > Updated: 2026-07-28T22:01:58.000Z. Sources: 7. Developments: 2. Instagram Reels, first tested in Brazil in 2019 and rolled out globally in August 2020, has become the dominant short‑form video format on the platform. By 2023, more than half of user time on Instagram was spent watching Reels, contributing to a broader short‑form video market that accounts for roughly 58 % of global social‑media usage and drives a projected $80 billion in U.S. digital video ad spend for 2026. In July 2026, the ecosystem saw a surge of AI‑powered Reel creation tools marketed as free, watermark‑free solutions that claim to boost engagement by up to 30 % and reach. Platforms such as Canva AI enable creators to generate short videos from text prompts or raw footage, offering features like automatic captions, music selection, and HD export. Simultaneously, Instagram emphasized privacy, urging users to adopt stronger security settings—including private profiles, two‑factor authentication, and direct‑message restrictions—to protect against scams and unauthorized access. Together, these developments illustrate how Instagram Reels has evolved from a feature launch to a market‑leading content format, now integrating advanced AI creation tools while promoting tighter user security. ## Timeline ### 2026-07-28: Instagram Reels launch reshapes short‑form video landscape Instagram Reels launched globally on 5 Aug 2020, shifting Instagram’s algorithm toward video; short‑form video now holds 58 % of social‑media time and drives $80 bn US ad spend in 2026. 3 sources. https://clstr.news/cluster/instagram-reels-launch-reshapes-shortform-video-landscape ### 2026-07-20: Instagram sees surge in AI Reel tools and privacy updates for users in 2026 Instagram promotes free AI Reel generators to boost engagement while urging users to adopt privacy settings like private accounts and two‑factor authentication in 2026. 4 sources. https://clstr.news/cluster/instagram-sees-surge-in-ai-reel-tools-and-privacy-updates-for-users-in-2026 --- Cite as: Instagram Reels growth and AI tools. CLSTR, https://clstr.news/situations/instagram-reels-growth-and-ai-tools