Amazon faces 'leader's dilemma' — fight AI shopping bots or join them (www.cnbc.com)

Amazon is grappling with a critical "leader's dilemma" as AI startups rapidly introduce automated e-commerce agents designed to transform online shopping. Currently, the retail giant is blocking access to its site for these agents while simultaneously developing its own AI tools to maintain a competitive edge. CEO Andy Jassy has acknowledged the profound impact of AI on e-commerce and hinted at potential partnerships with third-party agents, as indicated by a recent job posting for a role focused on "agentic commerce." This dual approach highlights the urgency for Amazon to adapt in a marketplace where agency-driven commerce could net approximately $1 trillion in U.S. retail by 2030, according to McKinsey. As AI shopping agents gain traction, they pose a threat to Amazon’s margins and customer relationships. The tech giants behind these agents could siphon away transactions, as consumers might utilize platforms like ChatGPT to complete purchases without directly visiting the Amazon site. Competing retailers, such as Walmart and Shopify, are exploring "frenemy" strategies, balancing collaboration with competition. While Amazon continues to enhance its own AI offerings—like the shopping chatbot Rufus and the "Buy For Me" feature—the challenge remains to protect valuable proprietary data, such as customer reviews and sales rankings, while navigating the evolving landscape of agentic commerce.