Latest Business News
Amazon CEO Andy Jassy: AI Represents a Huge Transformation in Our Lifetime
Amazon CEO Andy Jassy Challenges Notion That Amazon Has Fallen Behind in AI
Amazon CEO Andy Jassy doesn't agree with the belief that Amazon has fallen behind in the artificial intelligence race. He specifically challenges the notion that Microsoft and Google are ahead simply because they have added chatbots to their consumer products. Jassy likens this to the "hype cycle" before the "substance cycle."
Jassy believes that most people are focused on the applications of AI, such as ChatGPT, but he sees generative AI as having three macro layers, all of which are significant and vital.
Amazon's Investment in AI
Jassy has stated that Amazon intends to invest in AI across the entire company because AI has the potential to enhance virtually every customer experience. While Amazon is focused on AI as a whole, Jassy specifically points to Amazon Web Services (AWS) as a business that can strategically capitalize on the growing interest in AI over the long term.
AWS has already unveiled a generative AI service called Bedrock, where clients can develop their own chatbots and image-generation services using language models from Amazon and other startups. In addition, AWS has developed its own AI-specific chips, Inferentia and Trainium, which aim to simplify running large AI language models in the cloud. These chips are direct competitors to Nvidia's popular semiconductors in the AI chip market.
Jassy assures that Amazon's chips will offer "much better price-performance than you'll find anywhere else."
Through services like Bedrock, Amazon's custom chips, and CodeWhisperer, which generates code suggestions for developers, Jassy believes Amazon has a significant advantage in AI.
AI as a Focus Area for Amazon
AI has become a rare area for investment within Amazon amidst cost-cutting measures and a challenging economic outlook. The company recently carried out its largest layoff in history, cutting 27,000 employees. It has also halted the expansion of its Fresh supermarket and Go convenience store chains, as well as discontinued certain services. However, Amazon continues to prioritize and invest in AI due to its belief in its potential for transformation and growth.
The Impact of AI on New Businesses
Amazon CEO Andy Jassy's perspective on AI and its significance highlights the transformative nature of this technology. For new businesses, understanding and leveraging the potential of AI can be a game-changer. Here's how the insights shared by Jassy may impact new businesses:
Challenging the Narrative
Jassy's challenge to the notion that Amazon has fallen behind in AI emphasizes the importance of looking beyond superficial applications like chatbots. New businesses should not be discouraged by the perception of being behind in the AI race. Instead, they should focus on understanding the broader macro layers of generative AI and explore opportunities in untapped areas.
Investing in AI
Amazon's commitment to investing in AI across the entire company demonstrates the potential for enhancing customer experiences. For new businesses, strategically capitalizing on AI can give them a competitive edge. Whether it's developing AI-driven products or leveraging AI services like language models and custom chips, investing in AI can enable new businesses to deliver innovative solutions and improve efficiency.
A Rare Area for Investment
Despite cost-cutting measures, Amazon continues to prioritize AI as a focus area, recognizing its potential for transformation and growth. This indicates that even in challenging economic times, AI remains a crucial technology to invest in. New businesses should take note and allocate resources to research, develop, and implement AI solutions to position themselves for success.
In conclusion, embracing AI and understanding its multi-layered potential can provide new businesses with the tools to thrive and compete in today's rapidly evolving landscape. By adopting AI strategies that go beyond simple applications and investing in AI technologies, new businesses can harness the power of AI to drive innovation, enhance customer experiences, and ultimately achieve long-term success.
Article First Published at: https://www.cnbc.com/2023/07/06/amazon-ceo-explains-how-the-company-will-compete-in-ai-race-.html