Today, Amazon CEO Andy Jassy shared an annual letter to shareholders. In the letter, Jassy covered 2024 financials and highlights of the year. He also shared plans for 2025 and beyond, including plans for increasing the use of AI.
“Generative AI is going to reinvent virtually every customer experience we know, and enable altogether new ones about which we’ve only fantasized,” the letter says. Jassy covers uses for AI including productivity, customer service, and saving businesses time and money, as well as areas where we’ll likely see AI used more. That includes everything from coding to cancer research. He goes on to talk about why it’s important for companies to not only embrace the use of AI but to go all in on investing in it, saying that using the technology will “make customers’ lives better and easier every day.”
“But, if your customer experiences aren’t planning to leverage these intelligent models, their ability to query giant corpuses of data and quickly find your needle in the haystack, their ability to keep getting smarter with more feedback and data, and their future agentic capabilities, you will not be competitive,” he says. “How soon? It won’t all happen in a year or two, but, it won’t take ten either. It’s moving faster than almost anything technology has ever seen.”
Amazon has been investing in AI for years and, as Jassy explains to shareholders in the letter, the investment has been paying off. He says that AI revenue is growing at triple digit YoY percentages and that demand for AI chips, which are much more expensive than CPU chips, are in incredibly high demand, requiring more of an upfront investment, but leading to increased revenue.