Amazon Says 1,000 GenAI Applications In Development, CEO Andy Jassy Sees 'Significant Productivity And Cost Savings'

What Happened: The tech giant’s AI initiatives span multiple operational areas, from customer service improvements to inventory management. “We have a number of very significant productivity and cost savings efforts in our retail business using generative AI, and it’s just a fraction of what we have going,” Jassy stated during the earnings call.

These AI implementations are already showing measurable results. The company’s AI-enhanced customer service chatbot has improved satisfaction rates by 500 basis points, while AI-powered inventory management has led to 10% better forecasting and 20% improved regional predictions.

See Also: Gary Black Says Tesla’s Autonomous Network Won’t Make Uber Irrelevant, Cites Amazon As An Example Of Why Ride-Hailing Middlemen Will Survive

Amazon has a consensus price target of $255.37 from 41 analysts, with a high of $306 and a low of $212. The latest ratings from Benchmark, Telsey Advisory, and JMP Securities, average $275, implying a 20% upside.

Price Action: Amazon's stock dropped 4.05% in after-hours trading, settling at $229.16. Earlier on Thursday, it had closed at $238.83, marking a 1.13% gain, according to data from Benzinga Pro.

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