Amazon CEO Andy Jassy Says Third-Party AI Shopping Assistants 'Not Great' Yet

Amazon CEO Andy Jassy told investors during a post-earnings discussion that third-party artificial intelligence shopping assistants do not currently pose a threat to the company's online retail platform. Jassy remarked that the experience provided by external AI bots remains "still not great, nor more convenient than coming to a retailer directly."

While Jassy did not explicitly name Meta Platforms during his remarks, his comments followed reports that Amazon blocked Meta's new AI shopping assistant, Muse, from its platform. Meta has reportedly established partnerships with other major retailers, including Shopify, Walmart, and Best Buy, to integrate the tool.

Key Details on AI Shopping and Retail

• Consumer Preferences: Jassy stated that consumers still prefer visiting online retailers directly rather than relying on external AI agents to make purchases.
• Advertising Impact: Although Amazon reported weaker-than-expected advertising performance in its third quarter, Jassy clarified that external AI agents were not responsible for the decline.
• Internal Developments: Amazon continues to develop its own shopping tool, known as Alexa for shopping.

Usage Statistics for Alexa for Shopping

• Over 400 million customers reportedly used Alexa for shopping over the past year.
• Customer interactions increased by 570% year over year.
• US customers utilizing Amazon's shopping assistant reportedly spend 50% more per order compared to those who do not.

Industry analysts note that external AI shopping assistants could eventually alter consumer habits by reducing the need to browse individual retail apps. However, Amazon maintains that current alternatives lack the convenience required to disrupt traditional shopping methods. Readers can verify these statements by reviewing official Amazon quarterly earnings call transcripts and investor relations webcasts.