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Morgan Stanley: AI-powered “agents” could transform everyday chat apps into services that can shop, book taxis and handle basic tasks without users ever leaving the conversation screen

August 19, 2025 //  by Finnovate

Mobile messengers such as WeChat, LINE and Kakao are preparing to embed AI-powered “agents” into their platforms, which analysts say could transform everyday chat apps into services that can shop, book taxis and handle basic tasks without users ever leaving the conversation screen. Morgan Stanley says messaging apps in Asia are likely to be the first mainstream platforms to bring AI agents to the masses. These tools would go beyond chatbots, acting more like digital assistants deeply embedded into existing services such as shopping or payments. MS analysts say messaging apps already a daily habit for hundreds of millions in Asia are in a stronger position than standalone AI apps to drive mass adoption. If successful, these platforms could become “superapps” with new revenue streams from third-party developers joining their ecosystems. Tencent is expected to tap its own AI model to power new services on WeChat, the region’s largest messaging platform, while LINE and Kakao are working with OpenAI. The transformation is still in early stages, but Morgan Stanley says the upside is not yet priced into shares of Kakao or LY Corp, which is owner of LINE. It raised its price target on Kakao and reiterated its overweight view on Tencent, adding that LY Corp’s AI potential remains largely ignored by the market. Risks include poor user adoption, competition from large internet companies, or global AI players bypassing messaging apps entirely. But if the integration is seamless, AI agents could push messaging services well beyond simple text, triggering the next phase in how users interact with their phones and how platforms make money.

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