Amazon Leaning More Into AI — 5 Ways It Could Benefit Customers in 2025
AI adoption is a big thing in 2025, with big tech set to spend a quarter trillion dollars on AI systems this year, according to Forbes. Amazon is pouring billions into AI and is set to change how we shop, work and live in 2025. So, how exactly could these AI advancements benefit consumers?
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Amazon's AI strategy prioritizes practical applications over speculative tech, with Amazon Web Services (AWS) CEO Adam Selipsky emphasizing a 'customer-obsessed' approach during an interview with The Verge. From AI-curated shopping lists to instant refunds, these upgrades could save households money, time and stress. Here are five ways Amazon's heavy AI investment could directly improve your daily life this year.
Amazon's new Nova foundation models, such as the Nova Pro store, Nova Premier store and Nova Reel store, will change the way consumers engage with products. Through Amazon Bedrock, businesses and sellers can leverage such AI solutions in optimizing product listings and ensuring that consumers have quick access to the most relevant possible suggestions.
For instance, a search term like 'waterproof hiking backpack for under $100' provides recommendations based on title, customer-made videos and even third-party reviews.
The Novas can watch the product video or review it and, via summarized analysis, determine features to highlight or areas to avoid. They can also produce their own videos, showing, for example, how particular furniture would look in your living room.
This comes after Amazon invested $4 billion in Anthropic, whose Claude AI models are available for use on Bedrock, the Wall Street Journal reported.
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Currently, Amazon has introduced generative artificial intelligence into its Alexa devices. They can get information about context-aware actions, like adding items to existing lists or adjusting smart home devices on the basis of weather conditions. It also features some guardians and children freedoms, such as question-answer and storytelling for children using Alexa's capabilities.
Healthcare integration allows Alexa to make One Medical appointments in exchange for $9 per month, which is half of the normal price. According to Forbes, this comes after the e-commerce giant Amazon bought One Medical, whose vision was to integrate remote and clinic care, for $3.9 billion in early 2022.
Rufus is an AI digital assistant developed by Amazon using its own AWS Inferentia chips. It enables user queries for instant returns or refunds. For Prime Day 2024, Amazon used over 80,000 Inferentia/Trainium chips for Rufus to accommodate extremely high traffic. This upgrade has made Amazon Rufus customer service 4.5 times cheaper than its human counterparts.
According to Forbes, Rufus reduces customer service costs by up to 45% compared to other support services and has the same level of accuracy. The AI can also provide constant updates on order progress and automatically provide notifications in case of any delay.
Amazon One Medical is changing healthcare by embedding artificial intelligence into 1Life, the purpose-built electronic health record system. Created with the help of Amazon's technology teams, 1Life helps to facilitate organizational processes through such methods as recording notes and summing up patients' records.
This means that doctors can better concentrate on creating positive interactions with the patient that are not hindered by health information management issues.
Some examples of AI-utilizing tools are real-time visit notes, thanks to AWS HealthScribe, and paraphrasing of long patient histories to create relevant care plans. Moreover, an AI messaging system helps the care teams to quickly address the patients' concerns, thus boosting the level of their interaction.
These improvements also foster coordination among the care teams to assign work to the most fitting personnel, including doctors and pharmacists.
Amazon's AI shopping engine employs real-time price adjustments that surface limited-time discounts based on your browsing history and inventory levels. While Amazon hasn't disclosed specific savings figures, The Wall Street Journal reported that dynamic pricing algorithms are becoming standard across retail, often boosting conversion rates.
Retailers using Bedrock can deploy AI-generated video ads showcasing products in realistic scenarios, like testing a raincoat's durability during storms. According to Digitaldefynd, the 'frequently bought together' feature predicts complementary products with high accuracy. Sellers using these tools report 17% higher conversion rates, while shoppers benefit from targeted deals that save the average household $234 annually.
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