Meta (META.US) AI shopping assistant Muse tests the waters of e-commerce, Amazon (AMZN.US)'s nearly $70 billion advertising business faces a potential impact

The Zhitong Finance App learned that according to the “Wall Street Journal” report, Muse, a new artificial intelligence shopping assistant launched by Meta Platforms (META.US), is becoming a potential threat to Amazon, which may challenge the e-commerce giant's dominant position in the online shopping field and its advertising business of nearly 70 billion US dollars.

Meta launched Muse in September, which allows consumers to use AI agents to research products, complete purchases, and handle tasks such as travel reservations and budget management. Meta said that in the first six weeks after Muse went live, more than 10 million users in the US and Canada had created Muse agents.

For investors, the impact of this competition extends beyond retail sales. Amazon's advertising business relies heavily on sponsored placements, and these ads impact consumers browsing products on its platform. If AI agents can independently compare prices and select products, the effectiveness of such advertisements may be weakened, potentially impacting one of Amazon's most profitable revenue sources.

Faced with this trend, Amazon blocked Muse from completing purchases on its platform, citing security concerns. Walmart and Shopify have adopted the opposite strategy, partnering with Meta to embrace AI-driven shopping methods.

Amazon CEO Andy Jassy downplayed the immediate threat during Thursday's earnings call. He believes that third-party shopping agents are still not as convenient for consumers to buy directly from retailers, and said that Amazon's advertising business has not been substantially affected. Jassy also emphasized Amazon's own Alexa for Shopping, saying that the assistant can help consumers compare products, monitor prices, and get personalized recommendations, and has attracted more than 400 million users in the past year.

Despite this, industry observers warn that AI agents may weaken Amazon's long-term position as the preferred starting point for consumers to shop online. J.P. Morgan analysts believe Muse has the potential to become an important consumer AI platform; venture capitalist Paul Graham said Amazon's restrictions may create opportunities for emerging competitors.

Amazon is also developing its own agent-driven commerce capabilities. Its Shop Direct service now covers more than 250 million products from external merchants, and Buy For Me allows customers to buy select third-party products without leaving the Amazon platform. Analysts pointed out that Amazon's huge fulfillment infrastructure, customer relationships, and delivery capabilities may still provide a significant competitive advantage as it adapts to changes in shopping habits. Neuberger analysts remain optimistic about Amazon's adaptability.

Jassy also said that Amazon may eventually partner with an external AI agent. Such partnerships may help it maintain its dominant retail position, but the company still needs to balance embracing new shopping technology with protecting ad revenue — the latter relies heavily on keeping consumers within the Amazon ecosystem.