Amazon is bolstering its business model selling office software powered by AI

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KCBS Bloomberg Tech and Business Report 5 min 2 speakers 4 chapters transcribed 4 days ago
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Holly Quan 0:30
Time for our daily Tech and Business report. Today we're joined by Matt Day, Bloomberg news reporter based in Seattle. Amazon is adding to its business model and looking to sell office software powered by AI. Calling the new set of tools Amazon Connect Decisions and Amazon Connect Talent. So Matt, what are these so what does the software do and who's gonna buy it?
Matt Day 0:53
So the the first round of this has been marketed a couple of folks. Like one bucket is uh HR professionals, people especially who have to hire in large volume in a short period of time. You know, Amazon thinks they've got some expertise there from their warehouse business. And the second is uh is supply chain uh professionals, folks who whatever have to stock things in a warehouse, have to source things from factories. Um so that's the first the first and what looks like a flotilla of new software from from Amazon trying to break into business apps.
Holly Quan 1:17
They obviously wouldn't do this if there was an interest in uh having this kind of technology, right? I mean there's gotta be business uh interest in it.
Matt Day 1:26
Uh they seem to think so, but I think they also think there's just a broader opportunity given that AI tools allow you to do things new and different um a different way in the workplace. Um so they've they've built all of these um products to really tightly integrate, you know, AI agents um who can, you know, go send an email on your behalf, create a report on your behalf and and kinda do things rather than just uh forcing all of us to put the buttons ourselves.
Holly Quan 1:47
Is it similar to things that are offered by Microsoft in Oracle or is it easier to use?
Matt Day 1:53
Oh yeah, it definitely lines up with with the stuff that Oracle and Microsoft are doing and it's worth knowing that those companies, um, along with Salesforce are also kind of repurposing their technology for for this AI world. Uh Amazon's pitch or their their hope is that they can kind of um use a clean slate to break in in a way they haven't been able to to date.
Holly Quan 2:11
Is there something that makes Amazon's uh business software more attractive than somebody who's been in the business for a while in you know, servicing uh this kind of uh AI um business model?
Matt Day 2:24
The argument that Amazon would make is that, you know, i if you are anywhere in corporate America, your IT department probably already uses Amazon.

What new AI‑powered office tools is Amazon launching and why?

Matt Day 2:31
Um, you know, the the downside of that is that that's been true for for quite a while, you know, but in the vast majority of folks plugging away at computers still really rarely encounter Amazon built software. They're they're mostly a stranger to those of us who uh who type in emails for a living.
Holly Quan 2:44
What's the cost basis on this? Is it gonna be more expensive, less expensive, probably about equal to its competitors?
Matt Day 2:52
I gotta I gotta punt on that. I the pricing structure is um in contrast to a lot of software sold by a subscription, right? You get a copy of Microsoft Word, you pay Microsoft monthly for it. You know, a lot of this stuff is based on consumption pricing. How much do you use, how many of those AI agents did you send out into the world to go do things on your behalf. So I haven't really seen a a good analysis of whether this is gonna be, you know, cheaper, more or less.
Holly Quan 3:13
It and and I wonder whether or not, you know, this is new for Amazon. Had they been reluctant to to enter this section sector of um you know, business software before?
Matt Day 3:23
Yeah, they have. They've they're basically an infrastructure provider, right?

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