Amazon Throws Down Gauntlet in Artificial Intelligence Market; Develops AI-Based Ads

  • Amazon is setting up a team to develop new AI tools to automate video and image creation for advertisers on its platform.
  • The ecommerce platform seeks diversification by pushing advertising on Freevee, Amazon Music, and Amazon Fresh.

Amazon is now looking to take on Microsoft and Google in the AI space by setting up a dedicated team to develop and launch artificial intelligence-based tools. The products from this team will allow merchants on its platform to create photo and video assets for advertising purposes.

The move comes as an effort by Amazon to diversify its businesses further. The service will be available to merchants on platforms such as Amazon Fresh, Amazon Music, and Freevee. It will also include tools for visual and audio advertising focused on optimizing search results.

Amazon is prioritizing this business as key competitors such as Google and Meta have been working on similar NLP-based projects for their platforms. Microsoft, too, is testing AI ads on the Bing chatbot. Amazon is also exploring the possibility of AI tools to write customized product descriptions.

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Amazon Introduces ChatGPT-Like Capabilities for Alexa

Amazon also has plans to include new AI-based tech to its voice assistant Alexa. Toward this end, the company is working on a generalized large language model (LLM), unlike Microsoft’s Bing, which uses OpenAI’s model.

The new project aims for Alexa to improve its revenue potential by assisting with tailored suggestions, interactive video searches, and other intelligent story-telling capabilities. The move to bolster Alexa has come on the heels of major layoffs in the company, including the teams working on Alexa and other key hardware products.

Following its launch in 2022, ChatGPT has seen prominence in the AI market. With the immense hype surrounding the space, Amazon’s move to incorporate LLM-based upgrades into its offerings is no surprise.

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