Amazon aims to expand advertising revenue by utilizing generated AI | Forbes JAPAN Official Site (Forbes Japan)

Amazon is building a team to work on developing artificial intelligence (AI)-powered tools to generate photos and videos for sellers to use on its platform. It’s a new initiative approved by CEO Andy Jassy.

Behind the move is an ambition to further expand the advertising business. Jassy said the company is looking to increase the number of sellers of its new products using generative AI ads. Jassy wants to find new ways to deploy these ads across her business, and sees potential in many areas, including her own free video streaming, and selling sports ads on Prime Video’s live soccer coverage. there is He’s also considering using Amazon Music’s voice ads more and running digital ads on online supermarket AmazonFresh.

According to US tech news site Information, the platforms of Amazon’s main rivals in the advertising field, Meta and Google, are also working on similar projects, making it a strong opportunity for Amazon to develop AI advertising. There is an urgent need to launch a strong team. The company also plans to incorporate AI tools into the creation of product descriptions.

E-commerce operators like relatively new startup Scale AI are already pitching generative AI-powered products to sellers. Shopify also sells tools for merchants to generate photo and video ads for their products.

Although Jassy has cut 27,000 employees, it’s clear that it’s looking to bolster its existing business with stronger sales tools. The company made $38 billion in ad revenue last year and looks to be doing well this year.

Jussy’s efforts to maximize opportunities for Amazon’s various businesses are slowly becoming apparent. Strengthening our advertising business with powerful new tools will generate more revenue and give us a competitive edge over the big players. AI is a controversial tool, but it appears to be the right one for advertising.

(forbes.com original)

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