Amazon.com, Inc. (NASDAQ:AMZN) Q4 2023 Earnings Call Transcript

We built a generative AI application that in our fulfillment centers, that forecasts how much inventory we need in each particular fulfillment center. And so the start of the rollout of Rufus today is really just another step, but we think one that’s pretty meaningful in being a generative AI powered shopping assistant and it’s trained on our very expansive product catalog as well as our community Q&A and customer reviews and the broader web. But it lets customers discover items in a very different way than they have been able to on e-commerce websites. So if you want buying advice, like what should I look for in a pair of headphones or if you are doing purpose buying, like what should I buy for cold weather golf or comparisons, what’s difference in lip-gloss or lip oil or you want recommendations of the best Valentine’s Day gifts or you’re on a detailed page with bridge product info, where you don’t want to go through the whole page, you want to ask is this pickle ball rack that’s good for beginners.

All those questions you can pull in and get really good answers. And then it’s seamlessly integrated in the Amazon experience that customers are used to and love to be able to take action. So I think that that’s just the next iteration. I think it’s going to meaningfully change what discovery looks like for our shopping experience and for our customers. And I could kind of step through every one of those consumer businesses. Our advertising business is building capabilities where people can submit a picture and ad copy is written and the other way around. And you kind of think about Alexa, where we’re building a very large — expansive large language model is going to make Alexa even more productive and helpful for customer. Every one of our consumer businesses has a significant number of generative AI applications that they either have built and delivered or they’re in the process of building.

And I don’t see that changing for many years. We have a lot of ideas.

Dave Fildes: Thanks for joining us today on the call and for your questions. A replay will be available on our Investor Relations website for at least 3 months. We appreciate your interest in Amazon, and we look forward to talking with you again next quarter.

Operator: And ladies and gentlemen, that does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.