Instagram routinely updates the platform's algorithm. For the majority of Instagram's existence, the algorithm mainly affected the explore page and advertisements shown in feed. The actual feed itself was shown in chronological order, from most recent to least. However, the most recent update of the Instagram algorithm has changed the ways users are shown content, no longer seeing posts in chronological order, and rather, in an order based on what the algorithm deems "most relevant" to each individual user. This change has proved problematic, particularly for small businesses and creators.

The current algorithm is calculated from three main factors: relationship (interaction history), interest (post type), and timeliness (publishing recency). In theory, this breakdown allows for a more personalized experience on the app, with users predominantly seeing content that, based on their interaction and use history, is most relevant to them. However, the algorithm is designed so that accounts that already have high engagement (likes, shares, comments, views, etc.) are shown first in the feed, while accounts with less engagement are buried and "lost" in the feed. This in turn means that it is exceedingly difficult for small businesses and new creators to have their content shown in the feed and thus, will have a more difficult time marketing and expanding their following. Research done by Hootsuite reports that "75% of U.S. businesses are marketing on Instagram in 2020" and that 90% of all Instagram users follow a business." Instagram has become one of the most popular, reliable digital marketing tools for business in the last ten years, as can be seen by the high percentage of businesses that use the platform to promote their brand. This makes the algorithm all the more problematic. With such high numbers of businesses using the platform to market, there is more competition between brands to receive more engagement from followers, simply to even make it into the feed. Smaller businesses and creators will inevitably have a more difficult time connecting with consumers, as they are less likely to even be shown to existing or potential followers.

From a personal standpoint as well, the algorithm is designed in a way that makes it challenging for the "average person" to connect with family and friends, as these users are directly competing with engagement from celebrities, brands, etc.

One of the most transparent and relevant problems with Instagram is the social impact of the platform. Being a photo-sharing application, a feed of "picture-perfect" moments is generated, thus creating a culture of comparison and self-scrutiny. Particularly, popular creators and influencers on the app are notorious for only posting the "highlights" of their lives, rather than the reality, thus creating false expectations and comparisons for their followers. This culture of only posting the pictures that show life at its highest points, its most posed points, can be detrimental to one's self esteem.

Multiple studies have been done on the negative impact of social media on self esteem, however, Instagram in particular struggles more than other platforms with its toxic culture of comparison and self image. Because the platform is centered around photo sharing, there is a visual reiteration to users that for something to be deemed "good enough to post," it must be something that is exciting, aesthetically pleasing, and would be relevant to others. Many users of the platform have come forward to share their own experiences with the negative impact of Instagram on their relationship with themselves and with others. Ex-users of the app, or those who have come forward, often share the same sentiment. There is a pressure to have the most interesting content, the highest quality, the most perfect body, even the best "feed theme." Failure, or perceived failure, to achieve all of these unspoken standards can result in comparison to others, low self-esteem, and even anxiety and depression. This is a problem that Instagram is aware it has, and has even tried to combat in the past, as platform designers have brainstormed and even implemented changes to the application. In recent years, debate has sparked over removing the "like" button in order to reduce user competition and comparison, and newer updates allow users to delete, report, and completely disable commenting. Despite Instagram's efforts, however, many users and critics of the platform claim that the toxic social climate is in the application's nature and cannot be fixed.