Amazon Faces 'Leader's Dilemma' - Fight AI Shopping Bots or Join Them

Amazon finds itself caught between two competing impulses as AI shopping agents from OpenAI, Google, Perplexity and Microsoft mushroom across the e-commerce space -- block them to protect its dominant position, or partner with them to avoid being left behind. The company has largely played defense so far. Amazon recently updated its website code to block external AI agents from crawling it, and as of this week had blocked 47 bots including those from all major AI companies. In November, Amazon sued Perplexity over an agent in the startup's Comet browser that can make purchases on users' behalf, alleging the company concealed its agents to continue scraping Amazon's site. But Amazon's stance appears to be shifting, CNBC reports.

CEO Andy Jassy said on an October earnings call that Amazon expects to partner with third-party agents and has engaged in conversations with some providers. The company is now hiring a corporate development leader to forge strategic partnerships in 'agentic commerce.' Amazon is also investing in its own tools. The company launched shopping chatbot Rufus last February and has been testing an agent called Buy For Me that can purchase products from other sites within Amazon's app.

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