Amazon CEO: Generative AI could be largest tech transformation since internet

Andy Jassy says generative AI could be a critical building block for Amazon’s next pillar of growth following Marketplace, Prime and Amazon Web Services. PHOTO: DAVID RYDER/BLOOMBERG NEWS
Andy Jassy says generative AI could be a critical building block for Amazon’s next pillar of growth following Marketplace, Prime and Amazon Web Services. PHOTO: DAVID RYDER/BLOOMBERG NEWS

Summary

In his letter to shareholders, Andy Jassy says Amazon is committed to cost-cutting while also investing heavily in AI.

Amazon CEO Andy Jassy said generative artificial intelligence could be one of the largest technological transformations in decades.

Writing in his annual letter to shareholders, Jassy laid out a vision for how generative AI is the company’s next pillar of growth following Marketplace, Prime and its cloud-computing unit Amazon Web Services.

“Generative AI may be the largest technology transformation since the cloud (which itself, is still in the early stages), and perhaps since the Internet," Jassy wrote in his letter Thursday. “This GenAI revolution will be built from the start on top of the cloud. The amount of societal and business benefit from the solutions that will be possible will astound us all."

Jassy’s annual shareholder letter, his third since he took over as CEO, follows a longstanding tradition set by Amazon founder Jeff Bezos, who as CEO of Amazon for 27 years released annual letters that were studied across the tech industry and beyond. Bezos, who stepped down as Amazon CEO in 2021, typically used the letters to speak about Amazon’s accomplishments and ambitions and wrote them with storytelling flair.

Jassy also said Amazon remains committed to cost-cutting.

“We’ve challenged every closely held belief in our fulfillment network, and reevaluated every part of it, and found several areas where we believe we can lower costs even further while also delivering faster for customers," Jassy said in his letter.

Write to Steven Russolillo at Steven.Russolillo@wsj.com and Sebastian Herrera at sebastian.herrera@wsj.com

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