Amazon CEO Andy Jassy has revealed how the tech firm intends to harness the power of AI to recruit more consumers and develop highly-targeted advertising strategies.
Speaking to CNBC’s Andrew Ross Sorkin on US TV show ‘Squawk Box’, Jassy explained how Amazon is looking to use AI to win over increasingly reticent, cash-strapped consumers.
“Consumers are spending, but they’re just being really careful about what they spend on and how much they spend. Wherever they can, consumers are trading down on an average selling price,” Jassy said.
“You see, consumers, wherever they can find a deal, they take a deal. It’s going to take a lot for people not to buy detergent or shampoo or things like that.”
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Jassy added that he believed AI would “transform every customer experience” and that the brand was investing heavily in the technology to keep one step ahead of market fluctuations.
Last year, Amazon was able to grow its advertising business by 24% YOY, with Jassy revealing that a large chunk of the brand’s advertising was in fact led by “machine learning practitioners” who were “figuring out the right products to put in front of people, so [that] it doesn’t even feel like advertising to them.”
Despite this promising growth for the firm’s advertising arm – its senior VP of advertising products and tech, Colleen Aubrey has since left the role – transition to an as yet undisclosed one within the company.
At any rate, Amazon Ads is set to experienced even more positive growth across 2024 having recently introduced ads within Prime Video Content, helping its sales grow to £38 billion from £31 billion last year.
