Amazon’s not just about e-commerce and cloud storage anymore; they’re delving deep into artificial intelligence. AWS has been rolling out new machine learning offerings at a steady clip, competing head-to-head with Microsoft Azure and Google Cloud in the AI services arena. Their pitch is simple: integrate AI solutions with the same platform you already use for everything else.
A TechCrunch article I found last week highlighted how Amazon is deploying generative AI to improve product recommendations. The idea is to make e-commerce more intuitive, predictive, and personalized—ensuring you see exactly what you need before you even know you need it. That’s a revenue driver if there ever was one.
Meanwhile, Alexa continues to evolve, though it hasn’t become the massive revenue stream some predicted. Still, voice assistants remain a key entry point for AI in the home, and Amazon has a large installed base to leverage. If they can harness generative AI to make Alexa truly indispensable, it might reignite interest in smart home devices.
For investors, the biggest question is how much Amazon will spend to develop these AI capabilities—and how quickly it’ll pay off. Historically, Amazon’s willingness to invest heavily in innovation has paid dividends in the long run. So while AI might cause short-term bumps in operating expenses, it’s hard not to be optimistic about the potential returns. I’m staying long on AMZN, confident that AI will be a big piece of its future narrative.