The algorithmic model driven by artificial intelligence is entering the core gateway of the world’s leading retail companies. Amazon (AMZN) recently announced that the shopping search bar on its official website and mobile app will, depending on the specific context, generate product comparisons or purchasing suggestions using cutting-edge AI large language models. This new AI tool, called “Alexa for Shopping,” will replace the previously launched shopping assistant, Rufus. Unlike Rufus, which required users to click on a separate icon to activate, the new search experience will be displayed by default and will begin rolling out to users in the U.S. market this week.
Amazon is not testing Alexa for Shopping as an edge feature but is embedding it directly into the most central search bar gateway of its official website and app. This means that cutting-edge AI large language models are taking over the agentic workflow in the e-commerce chain, shifting from “users finding products” to “AI understanding needs, comparing products, generating suggestions, and assisting with order placement.” This move also highlights Amazon’s direct response to the potential diversion of e-commerce retail traffic by external AI gateways such as ChatGPT, Gemini, and Perplexity. Amazon hopes that an AI-driven answer mechanism will prevent shoppers from turning to other websites or chatbots, which have been trying to make it easier for users to find and purchase products—some even partnering with online retailers. Search service providers, including Alphabet’s Google Search, have also been incorporating AI-generated answers into their responses to queries over the past few years.
According to Morgan Stanley, the earliest tangible outcomes in the AI application layer are vertical scenarios that can be embedded into high-frequency business processes, directly improving conversion rates and profit margins. For this reason, Morgan Stanley views Amazon as one of the “underappreciated big winners of the AI wave.” The core logic is that both AWS cloud services and the retail business stand to benefit from AI: AWS handles computing power and enterprise AI demands, while the retail side leverages AI shopping agents to improve the efficiency of search, advertising, recommendations, and transactions. Morgan Stanley estimates that by 2030, AI agent-based shopping could impact $190 billion to $385 billion in U.S. e-commerce spending, with the baseline scenario accounting for roughly 10% of online retail.
Amazon Vice President Daniel Rausch stated that the new search results will be triggered based on how users structure their searches. If shoppers want to compare espresso machines, create a skincare routine and order products, or set up a birthday reminder with gift suggestions for family members, the system will present AI answers and personalized recommendations. Simpler queries such as “pants” or “bananas” will directly lead to standard product listings. Additionally, users of Echo-branded smart speakers with screens will be able to access the full Amazon shopping website. Alexa for Shopping integrates Rufus’s features and will be provided free of charge to all users.
