From Nasdaq:

Amazon has released an artificial intelligence assistant known as Rufus, which seeks to guide users to products that best suit their needs. However, concerns have been raised about Amazon’s history of steering customers toward products that most benefit the company.

The Federal Trade Commission has filed a lawsuit against Amazon, alleging that the company operates a “pay-to-play” system which gives priority to products that marketers spend the most on. Amazon has denied these claims and will contest the suit in court.

Amazon has declined to discuss how Rufus operates, but reports suggest that the AI is trained using various sources, including Amazon’s product catalog, reviews, web information, and question and answer sections.

Despite initial concerns, Rufus does not currently appear to be influenced by advertising. This newfound neutrality seems to be essential in building trust with consumers.

Amazon’s Rufus AI has sparked concerns about the influence of advertising on consumer choices. In the past, Amazon has allowed advertising to drive its product recommendations, with sponsored listings appearing nine times more frequently than on other major retail platforms.

Potential for Rufus to increase engagement and conversion rates has been recognized, leading to the expectation of increased revenue for Amazon.

Amazon has revealed little about Rufus, briefly describing the AI as a way to help customers discover items in a different manner. Examples of Rufus guiding purchases following unique shopper queries have been showcased.

While Rufus’s specific capabilities remain uncertain, Amazon is uniquely positioned to capitalize on the vast trove of consumer data they have access to.

In a similar vein, the news covers a demand for AI chips, the deployment of in-house custom chips by Meta, and the competitive market surrounding these developments in the tech industry.



Read more: When Amazon’s new AI tool answers shoppers’ queries, who benefits?