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Amazon is set to introduce advertisements into Rufus, its generative AI-powered shopping assistant for U.S. users.
This move was revealed in a changelog published by Amazon this week and will allow Sponsored ads, Amazon’s core search ad format, to appear within product search results in Rufus.
Launched in February 2024, Rufus helps users find products through Amazon’s mobile app by answering queries and offering tailored product recommendations.
Amazon said the ads will be contextually relevant, generated in response to users’ queries, and designed to enhance the shopping experience rather than detract from it.
Did you really think that Amazon would never monetize their AI model Rufus?
It's coming sooner than you think.
Honestly, I'm not as bullish on this and expect severe customer pushback.
Imagine asking Rufus for the best creatine gummy brand on Amazon and it commends an unknown… pic.twitter.com/k90Pet5gvp
— Jon Elder | Amazon Growth | Private Label (@BlackLabelAdvsr) September 9, 2024
While this could help advertisers extend their reach through the chatbot, there are concerns regarding the effectiveness of these ads. Amazon has indicated that performance metrics for ads displayed within Rufus will not be included in the standard reporting provided to advertisers.
This lack of visibility could complicate efforts to measure the success of ad campaigns, prompting brands to develop alternative strategies to assess their impact on overall sales.
Meanwhile, this is not the first instance of a chatbot-maker exploring ad integration in a chatbot. Earlier this year, Microsoft introduced ads in its Copilot, which was later suspended after user outrage.
While Amazon claims the introduction of ads into Rufus is part of the company’s ongoing efforts to enhance the shopping experience, it might not represent the whole story given how companies venturing into AI are looking to gain profit from their AI investments.
Recent records show that many companies who bet big on AI are still struggling to make good returns from their investments. So, it’s not surprising that Amazon and other AI-focused firms are actively seeking ways to monetize their investments.
