'Over 50,000 advertisers tap Amazon's AI-powered ad tools in Q1 2025': CEO Andy Jassy
According to Jassy, there would be massive job cuts as Amazon has increased focus on implementing AI services across the segments, including shopping, Alexa, advertising, and internal operations.
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Global e-commerce giant Amazon.com's Chief Executive Officer (CEO) Andy Jassy has expressed strong optimism for artificial intelligence technology. Citing a few examples of how the online shopping platform has integrated AI, Jassy said Amazon has over 1,000 Generative AI services and applications in progress or built.
In an internal memo, Jassy said Amazon has built a suite of AI tools that smoothen brands to plan, onboard, create, and optimize campaigns. "In Q1 alone, over 50K advertisers used these capabilities," he added.
Further, talking about internal operations, Jassy said AI has helped in improving inventory placement, demand forecasting, and the efficiency of robots. The constant work on AI has also improved the cost to serve and delivery speed.
However, the current work on Gen AI services is only a small fraction of what Amazon has projected, Jassy said.
As the company will roll out Gen AI and agents in the future, Jassy stressed it would change the work environment entirely. According to Jassy, there would be massive job cuts as Amazon has increased focus on implementing AI services across the segments, including shopping, Alexa, advertising, and internal operations.
"We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," the Amazon CEO asserted.
Amazon has laid off more than 22,000 employees since 2022. This year, the e-retailer laid off 100 employees in its devices and services division, including Alexa voice assistant, Echo hardware, Ring video doorbells and Zoox robotaxis.
