Amazon wants shoppers to use Alexa, not Meta's Muse. Here's why the AI shopping battle is getting personal? Decoded here

Amazon is pushing customers towards its Alexa shopping assistant as Meta's Muse gains popularity. Here's why the two tech giants are competing for control of AI-powered shopping.

Amazon is making a direct pitch for its own AI shopping assistant as competition intensifies over who gets to guide consumers' online purchases. Chief Executive Andy Jassy has played down the threat from outside agents such as Meta's Muse, arguing that shoppers still find it easier to buy directly from retailers.

The comments came during Amazon's quarterly earnings call on Thursday, weeks after the company blocked Meta's Muse from accessing its online store. The dispute highlights a growing contest between technology companies over the future of online shopping, and who controls the relationship with customers.

Why Amazon blocked Meta's AI shopping assistant Muse

Amazon said in September that Muse's access to its store would breach the terms of use agreed to by its customers. Although Jassy did not name Meta's assistant during the earnings call, he questioned whether consumers were ready to let outside AI agents handle their shopping.

"Still not great, nor more convenient than coming to a retailer directly," he said, describing the experience offered by external shopping agents.

The concern for Amazon goes beyond which AI assistant customers prefer. If shoppers use an outside agent to find and buy products, they may no longer visit Amazon's website or app. That could reduce their exposure to the advertisements that are an important source of revenue for the retailer.

Jassy said, however, that external shopping agents were not responsible for Amazon's weaker-than-expected advertising performance in the third quarter.

Amazon says Alexa shopping is gaining ground

Rather than relying on outside platforms, Amazon wants customers to use its own AI-powered shopping assistant, known as Alexa for shopping.

Sayantani Biswas