AWS claims that third-party agents are yet to deliver great customer experience.
In its third-quarter earnings call, the technology platform saw a strong earnings result following significant investments in AI.
When questioned on the future of agentic e-commerce, Amazon claimed that most of these third-party agents currently lack the capabilities required to deliver ‘acceptable’ customer experiences.
Amazon CEO, Andrew Jassy, expressed difficulty in finding a third-party to partner with for AI shopping agents.
He said, “Right now, I would say the customer experience is not – there’s no personalization.
“There’s no shopping history. The delivery estimates are frequently wrong. The prices are often wrong.”
He also notes that despite its sudden upsurge, creating AI agents is still “harder than it should be.”
Currently, these agents are unable to deliver the required seamlessness and reliability requirements that consumers expect.
However, Jassy remains determined that the future of agentic commerce will greatly improve the online shopping experience, narrowing down personalized choices using accurate user context.
Amazon has also announced its plans to continue investing to keep up with AI trends, after adding more than 3.8 gigawatts of AWS power capacity during the past 12 months, doubling the capacity levels of 2022, as well as expecting to add another gigawatt by the end of the quarter.
Despite AI adoption still being at the start of its journey, Amazon believes this can benefit its customers by introducing the features early on to avoid the competition.
This investment has included the recent launch of Project Rainier, a multi-data center housing almost half a million Trainium2 chips to advance its agentic AI systems and support AI-based services, expecting to double by the end of the year.
Success in AI Features
AWS has already seen successful innovations with AI in retail this quarter.