Amazon CEO Says Generative AI Will Reduce Total Corporate Workforce

Benzinga
2025.06.17 18:36
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Amazon CEO Andy Jassy announced that the company is heavily investing in Generative AI, which he believes will transform customer and business interactions. He noted that this technology could lead to a reduction in the corporate workforce due to increased efficiency. Jassy emphasized the importance of AI in various Amazon services, including AWS and advertising, and mentioned that Amazon is developing over 1,000 AI applications. He also highlighted the need for significant capital investments to remain competitive in the AI sector. AMZN stock is currently down 0.57%.

Amazon.Com Inc AMZN chief Andy Jassy in a blog post on Tuesday, highlighted the company’s extensive leveraging of Generative AI to drive value.

Technologies like Generative AI are rare and come about once-in-a-lifetime, completely transforming possibilities for customers and businesses, Jassy said, justifying its aggressive investment.

He stated that Alexa+, the company’s advanced Alexa personal assistant, is the first personal assistant that can take significant actions for customers while providing intelligent answers to virtually any question, citing its tens of millions of customers worldwide.

Also Read: Amazon To Pour Nearly $100 Billion Into AI In 2025, Surpassing Microsoft And Alphabet

Jassy stated that this AI-driven transformation might reduce the corporate workforce in the coming years due to increased efficiency. He recommended being curious about AI and educating yourself by attending workshops and training.

He highlighted the huge impact of Gen AI and said that nearly half a million selling partners are using these services, and the listings they are creating are measurably better.

Jassy wrote about how the company transformed advertising with AI, helping brands plan, onboard, create, and optimize campaigns. He said over 50,000 advertisers used these capabilities in the first quarter alone.

Jassy highlighted Generative AI’s crucial role within Amazon Web Services (AWS) for developers and in optimizing internal functions such as fulfillment and customer service. He also pointed to the development of AI agents to automate tasks and accelerate innovation.

Amazon also restructured its Customer Service Chatbot with GenAI and assembled more intelligent and compelling product detail pages by leveraging GenAI.

Jassy underscored Amazon’s substantial investment in AI, expressing a firm belief in its capacity to alter work and daily life profoundly. He envisions a future where AI agents become ubiquitous, dramatically expanding the scope and pace of innovation for consumers.

He said Amazon has over 1,000 Generative AI services and applications in progress or built, which is a small fraction of what it will ultimately build.

Earlier, Jassy highlighted the need for substantial capital to secure AI chips and build data centers, reiterating the need for large capital investments during the current period of “high demand” in order to remain competitive in the rapidly changing AI landscape.

Price Action: AMZN stock is down 0.57% at $214.86 at the last check on Tuesday.

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