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    Amazon’s AI strategy has evolved significantly over the years, driven by its vast data resources from e-commerce and its early bet on AI with the development of Alexa in 2014. Initially, Amazon focused on voice recognition and smart assistants, with Alexa becoming a major product, selling millions of units by 2016. By 2022, as AI technologies advanced rapidly, Amazon reevaluated its strategy, particularly in light of the success of transformer models like ChatGPT.

    In 2023, Amazon reset its AI focus, notably with the launch of AWS Bedrock, a marketplace for third-party AI solutions. The company also invested $1.25bn in Anthropic, with potential further investments, marking a strategic pivot towards AI infrastructure and foundational models. Amazon continues to develop its own models, integrating AI advancements into AWS services, such as new vector capabilities in databases and enhanced orchestration features through Bedrock agents.

    Amazon’s AI strategy is supported by responsible AI practices, emphasizing fairness, explainability, and privacy. The company engages with global organizations and educational initiatives to promote ethical AI development, aligning its technological advancements with its commitment to diversity, inclusion, and public policy

    2024 AI-related highlights

    • Rolls out Fit Insights AI tool related to an item’s fit, style, and fabric to reduce returns (Jan 2024)
    • Joins the U.S. AI Safety Institute, investing in responsible AI development and safety standards. (Feb 2024)
    • Announces over €700m investment in robotics and AI-powered technologies across Europe (April 2024)
    • Recruits co-founders and employees of Adept, an AI startup to bolster AI efforts  (June 2024)
    • Acquires Perceive for $80M from Xperi, expanding its AI technology for edge devices (Aug 2024)
    • Revamps Alexa using Anthropic’s Claude AI, enhancing functionality and introducing a subscription model. (Aug 2024)
    • Introduces New AI Video Tool That Can Generate Advertisements Using a Single Product Image (Sept 2024)
    • Amazon’s Project Amelia, an AI assistant, helps sellers manage metrics and resolve business issues effectively. (Sept 2024)
    • Amazon One Medical launches AI tools to reduce administrative tasks, enhancing patient care and provider focus. (Oct 2024)
    • Signs agreements for Small Modular Reactors to meet energy demands and support carbon-free energy. (Oct 2024)