Amazon’s Clever AI Innovations Can Strengthen Its E-Commerce Moat


  • Amazon introduced ‘Customers ask Alexa’, which enables Amazon sellers to answer customer FAQs through Alexa and facilitate purchase decisions.
  • This feature allows Amazon to better understand customers’ shopping journeys and preferences, and subsequently help it personalize and further improve the shopping experience, making the Amazon ecosystem stickier among shoppers.
  • It also enables merchants to learn more about their customers and discover new audiences for their products through conversational queries, enhancing the value proposition of selling through the Amazon marketplace.
  • Alexa can only assist with purchasing prime-eligible products, encouraging more merchants to join the prime network, which consequently boosts third-party seller services revenue.
  • As Amazon sellers strive to improve their product rankings in the interest of inducing Alexa to recommend their products, they will spend more on advertising, bolstering Amazon’s advertising revenue.

Amazon Echo, the voice recognition streaming device from Amazon

seewhatmitchsee/iStock Editorial via Getty Images

Amid the hype around AI accelerating lately thanks to the launch of ChatGPT and other natural language innovations, investors shouldn’t overlook Amazon’s (NASDAQ:AMZN) AI advancements to augment the shopping experience. AI innovations are changing

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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