In a stark prediction during Amazon’s Q3 earnings call, CEO Andy Jassy laid out how artificial intelligence is set to upend the retail world.
Physical stores still rule today, but not for long. “I still think if you look at the worldwide market segment share of retail, still 80% to 85% of it lives in physical stores,” Jassy said.
“And that equation is going to flip over time. And I think AI is going to only accelerate that.”
The comments came as Amazon posted blowout results: revenue soared 13% to $180.2 billion, with AWS surging 20%—its fastest growth since 2022—fueled by AI demand.
Online store sales hit roughly $67 billion, up double digits, while physical stores like Whole Foods and Amazon Fresh grew to $5.58 billion, a more modest 7% bump.
Rufus Powers Up Shopping—with Real Results
Jassy spotlighted Rufus, Amazon’s AI shopping sidekick, as proof of AI’s retail muscle.
“Rufus, our AI-powered shopping assistant has had 250 million active customers this year with monthly users up 140% year-over-year, interactions up 210% year-over-year and customers using Rufus during a shopping trip being 60% more likely to complete a purchase.
