Amazon CEO Asserts the E-commerce Giant’s Investment in AI: Company Prioritizes Substance Cycle over Predictions

Amazon CEO says not to count e-commerce giant out of AI race: Company focused on ‘substance cycle’

Artificial intelligence (AI) is the future. It is an undeniable statement backed up by statistics, scientific discoveries, and investments made by major corporations across the globe. The AI industry is booming, with tech giants like Amazon, Google, and Microsoft leading the way. Amazon CEO, Jeff Bezos, knows this all too well and is doubling down on the company’s efforts to improve its AI capabilities. His message? Don’t count Amazon out of the AI race.

The Importance of AI for Amazon

Amazon’s success as an e-commerce giant is no secret. The company has completely revolutionized the way we shop and has made life a lot easier for millions of people around the world. However, Amazon’s ambitions go beyond e-commerce. The company is consistently pushing the boundaries of what is possible in fields such as cloud computing, artificial intelligence, and machine learning. The reason for this is clear: AI will be a driving force in shaping our future, and Amazon wants to make sure they are at the forefront of this revolution.

As Jeff Bezos puts it in a 2017 letter to shareholders, “Machine learning drives our algorithms for demand forecasting, product search ranking, product and deals recommendations, merchandising placements, fraud detection, translations, and much more. Though less visible, much of the impact of machine learning will be of this type – quietly but meaningfully improving core operations.” In other words, AI is not just a fancy tool that Amazon can show off to its customers; it is an essential component that makes the company tick.

What is the ‘Substance Cycle’?

One key aspect of Amazon’s AI strategy is what the company refers to as the “substance cycle.” The substance cycle is the company’s approach to how it creates and improves products over time. The cycle consists of four main steps:

Step 1: Collect Data

Amazon collects a massive amount of data on a daily basis. This data comes from various sources such as customer searches, purchases, and feedback. The goal is to collect as much data as possible to gain insights into customer behavior and preferences.

Step 2: Analyze Data

Once the data is collected, it needs to be analyzed. Amazon uses sophisticated machine learning algorithms to mine the data and extract meaningful insights. This allows the company to identify patterns and trends that would otherwise be difficult to detect.

Step 3: Improve Products

Based on the insights gained from the data analysis, Amazon can improve its products and services. For example, the company can use the data to create more personalized product recommendations, streamline checkout processes, and improve customer service.

Step 4: Repeat

The substance cycle is a continuous process. Amazon repeats the cycle over and over again, collecting more data, improving its algorithms, and delivering better products and services to its customers.

Amazon’s AI Projects

Amazon’s AI efforts are not limited to just improving its core operations. The company has also invested heavily in various AI projects that have the potential to shape our future. Here are some notable examples:


Alexa is Amazon’s virtual assistant. It is an AI-powered smart speaker that can do everything from playing music to ordering pizza. Alexa is powered by Amazon’s natural language processing technology, which allows it to understand and respond to spoken commands. As of 2021, Alexa has over 100 million active users.

Amazon Go

Amazon Go is a chain of cashierless convenience stores. Customers can walk in, pick up the items they need, and walk out – all without having to go through a checkout process. The stores use a combination of computer vision, deep learning algorithms, and sensor fusion to track customer movements and purchases.

Project Kuiper

Project Kuiper is Amazon’s plan to launch a constellation of low-earth orbit satellites. The goal is to provide high-speed internet access to underserved communities around the globe. The project is still in its early stages, but it has the potential to revolutionize the telecommunications industry.

The Future of AI at Amazon

Amazon’s commitment to AI is unwavering. The company knows that AI will play a crucial role in shaping our future, and it wants to be a leader in that space. As Jeff Bezos puts it, “The approach we take to AI and machine learning is focused on substance. We want to improve and do new things with these tools because we believe they will be helpful to customers, not because we have a quota to fill.”

Amazon is not content with merely improving its day-to-day operations with AI – the company is also looking towards the future. From improving healthcare to creating new models of transportation, the potential uses for AI are endless. Amazon is well-positioned to take advantage of these opportunities, thanks to its massive data collection capabilities and its commitment to innovation.


AI is the future, and Amazon knows it. The company’s commitment to AI is apparent in its day-to-day operations, as well as in its investment in cutting-edge projects. The substance cycle is a testament to Amazon’s approach to AI – collect data, analyze it, improve products, and repeat. As the world becomes more reliant on AI, it is comforting to know that Amazon is at the forefront of this revolution. So, don’t count Amazon out of the AI race – the company is just getting started.

Joseph Hubbard

Joseph Hubbard is a seasoned journalist passionate about uncovering stories and reporting on events that shape our world. With a strong background in journalism, he has dedicated his career to providing accurate, unbiased, and insightful news coverage to the public.

Recent Posts