BY PYMNTS | OCTOBER 10, 2024
Amazon has implemented new generative artificial intelligence (GenAI) technology in an attempt to improve product research and personalize shopping recommendations on its eCommerce platform, joining a growing trend of AI adoption in online retail.
The eCommerce giant introduced AI Shopping Guides on Wednesday (Oct. 9) to simplify product research for consumers. These guides, powered by GenAI, consolidate critical product information such as features, brands and customer insights. They appear in search suggestions and on the homepage, allowing shoppers to explore tailored recommendations based on their needs.
“Retail and, more specifically, eCommerce, is a crucible for new technologies, in large part because the U.S. market is almost perfectly divided into Amazon vs. everyone else,” Eric Best, CEO of retail data management company SoundCommerce, told PYMNTS. “This sets up a perpetual arms race in the industry, where Amazon uses its scale and technology to disrupt a category or feature — which then gives rise to dozens or sometimes hundreds of venture-funded independent alternatives.”
Retail AI Race Speeds Up
Amazon’s AI Shopping Guides compile product information and recommendations for various categories using GenAI. The guides can be used alongside Rufus, Amazon’s AI assistant, to answer additional customer questions during product research.
The competitive landscape for GenAI extends beyond retail.
“Amazon Web Services — and its investment in AI and generative models — sets up an even bigger competitive duel,” Best said. “The counterpoint is the self-proclaimed hundreds of billions being invested in the same capabilities by Microsoft, Google, OpenAI, Apple and Meta; data-focused cloud providers like Snowflake and Databricks; and the thousands of early-stage funded startups building new products on these platforms.”
Several companies are already making waves in the AI-driven retail space.
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