Andy Jassy, CEO Amazon, appears to think the world about AI and what it can do for the company. In his annual shareholder letter, Jassy indicated the company is making huge investments in AI tools following its explosion in the tech scene recently.
Aside from his belief in AI, Jassy outlined the measures that Amazon had to take in 2022, which he considers one of the most difficult for the company in macroeconomic terms. The company had to bear cost-cutting and scrapping its health care plan Amazon Care. More importantly, it shuttered 27,000 corporate jobs, the biggest in company history.
Jassy wrote in the report that such changes were meant to streamline the company’s expenditures and that all decisions have been based on evaluation and constant adaptation. Even the usually profitable Amazon Web Services is encountering “short-term headwinds right now” despite amassing revenues amounting to $62 billion revenue and a 29% year-over-year growth in 2022. He reiterated how Amazon units have to tighten their belts given macroeconomic challenges. However, amid the volatility of the economic situation, Jassy remains optimistic that Amazon’s “best days” are ahead, especially in the field of artificial intelligence (AI).
Amazon is committed to spending more on specialized chips needed for machine learning. It is also stepping up its advertising unit and generative AI tools, which are taking the tech world by storm. Generative AI encompasses highly modern machine learning systems able to generate text, converse, and produce images on demand, drawing on a large database of online text and digital books. The company also intends to invest in large language models (LLMs), a specialized type of AI able to imitate the writing styles of actual humans.