Amazon’s big Prime Day pitch is its AI assistant. Is it working?

Amazon is heavily promoting its AI assistants, Alexa and Rufus, during its Prime Day sales event, which concludes on June 26, 2024. This initiative reflects Amazon's vision for the future of online retail, aligning with a trend where over 50% of U.S. shoppers are open to AI managing their entire shopping journey, according to payments platform Adyen. Early data from Adobe indicates that traffic originating from AI sources converted into sales 50.7% more effectively than non-AI traffic during Prime Day, with AI-referred shoppers spending less time on the site. Despite these positive indicators, the internal success of Amazon's AI tools is less clear. Experts suggest a disconnect exists between Amazon's intended use of its AI as a "shopping companion" and how consumers are actually employing it. Julian Skelly, managing partner for retail at Publicis Sapient, notes that many shoppers are currently using tools like Rufus primarily to validate discounts rather than for broader shopping assistance, which falls short of Amazon's overarching goals.