Amazon Boosts Ad Business with AI-Generated Photos and Videos

Amazon Boosts Ad Business with AI-Generated Photos and Videos

Amazon is building a new team to create AI-generated photos and videos for merchants to use on its platform. This initiative aims to strengthen the company's advertising business and keep pace with rivals such as Meta and Google, who are working on similar projects. The push into AI-supported advertising comes as other e-commerce platforms like Shopify and Scale AI have started selling tools for generating photo and video ads.

Key Takeaways:

  • Amazon is assembling a new team to develop AI tools that create photos and videos for merchants.
  • The initiative is driven by the company's goal to expand its ad business and compete with rivals Meta and Google.
  • Amazon CEO Andy Jassy aims to find new ways to place ads across the company's businesses, including sports ads, audio ads on Amazon Music, and digital ads inside Amazon Fresh stores.
  • E-commerce companies like Scale AI and Shopify are already offering generative AI tools to online merchants.
  • AI is increasingly being used for various applications, such as chatbots for customer service, content generation for news sites, and large language models like ChatGPT, Bard, and Bing AI.

Conclusion: Amazon's move to develop AI-generated content for merchants showcases its commitment to enhancing its ad business and staying competitive in a rapidly evolving landscape.


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