Amazon Begins Offering Its AI Shopping Tech to Other Retailers

• Kate Spade has already deployed the technology to launch a gifting assistant, with additional retailers currently testing the service
• Amazon is pitching the solution as a way for retailers to maintain control of their shopping experience rather than relying on third-party AI intermediaries like OpenAI or Google
• The company has walled off its own site from external AI agents while building features that allow purchases on competitors' websites

Summary

Key Development:

Amazon Web Services (AWS) is now licensing its proprietary AI shopping technology to other retailers, enabling them to build custom AI shopping assistants in as little as 60 days. The service is built on Alexa for Shopping, Amazon's recently rebranded e-commerce agent (formerly Rufus).

Main Players:

• Amazon/AWS: Offering the AI shopping architecture, starter code, and expertise as a commercial service
• Kate Spade: First announced customer, using the technology to launch a gifting assistant
• Additional retailers currently in testing phase

Strategic Context:

This move follows Amazon's established playbook of converting internal technology into commercial services—similar to its approach with AWS cloud computing and fulfillment services two decades ago. By offering the service through AWS rather than Amazon's retail division, the company aims to reassure competitors concerned about data sharing.

Market Landscape:

The competitive AI shopping space includes major players like OpenAI, Google, and Perplexity launching research tools and shopping agents, though some have faced technical challenges and retailer onboarding difficulties. Retailers including Walmart, Shopify, eBay, Etsy, and Instacart are pursuing hybrid strategies—building proprietary tools while partnering with AI platforms.

Amazon's Position:

Unlike competitors, Amazon has avoided partnerships with rival AI platforms, focusing instead on internal development. The company has blocked external AI agents from scraping its site while developing "Amazon Anywhere," allowing purchases on other retailers' websites.

Key Argument:

Amazon contends retailers should maintain control rather than rely on intermediaries, emphasizing their superior "vertical knowledge about their products, customers, and categories that no general-purpose AI can match."