Amazon (AMZN) has reportedly established a new team dedicated to agentic AI to unlock its potential as the next big opportunity for its cloud computing unit, AWS. According to Reuters, AWS CEO Matt Garman announced the team in an internal email, highlighting agentic AI as a potential multi-billion-dollar business for AWS. Meanwhile, Amazon’s latest AI innovations, including Alexa+, signal its push to stay competitive in this evolving space.
Agentic AI Gains Traction Among Tech Giants
Agentic technology refers to artificial intelligence (AI) systems that can operate autonomously, make decisions, and take actions with minimal human intervention. These AI agents can analyze data, learn from their environment, and execute complex tasks based on their objectives.
Amazon is the latest company to adopt AI agents as the tech industry accelerates its shift toward autonomous systems. Major software firms like SAP (SAP) and Salesforce (CRM) have already introduced AI agents to streamline work tasks.
Interestingly, Microsoft (MSFT)-backed OpenAI co-founder Sam Altman and other tech leaders predict that 2025 will mark the year AI agents officially join the workforce.
Amazon Highlights Alexa+ Agentic Capabilities
Recently, Amazon has upgraded its Alexa voice assistant with Alexa+, adding generative AI to better compete with Google (GOOGL) and Microsoft. Alexa+ will use Amazon’s language models along with AI from Anthropic, a company backed by Amazon.
Swami Sivasubramanian, the newly appointed head of AWS’s agentic AI division, added that Alexa+ dynamically selects the best AI model for each user request and seamlessly integrates with email, calendars, and apps. Moreover, Alexa+ can work on tasks in the background, handling complex interactions with websites and services even when you’re not engaging.
As AI agents continue to advance, experts predict they could rival or even replace human software engineers, further transforming the way technology interacts with users and businesses.
Is Amazon Stock Price a Buy?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 46 Buys and one Hold assigned in the last three months. At $269.80, the Amazon average share price target implies an upside of 32.4% from the current level.
Year-to-date, AMZN stock has declined by 7%.
