Amazon’s founder reportedly sees Prime Video as a place to promote the company’s AI efforts.
Jeff Bezos has asked Prime Video chief Mike Hopkins to revamp the streaming service to put artificial intelligence (AI) at the center of things, Reuters reported on Thursday, citing four sources with direct knowledge of the matter.
This led to an internal project called Lighthouse that gives the more than 200 million people who use Prime Video a better glimpse into Amazon’s AI capabilities, which the company has spent hundreds of billions of dollars developing.
PYMNTS has reached out to Amazon for comment, but has not yet received a response.
Lighthouse is seen as a key part of Amazon’s efforts to improve its position in the AI space amid competition from companies such as OpenAI and Anthropic, Reuters officials said. Other projects, such as a long-running upgrade to Amazon’s voice assistant Alexa to provide more conversational responses, have had mixed results, and the division remains in the red, people told Reuters.
Reuters sources said the Prime Video project was launched after a “controversial” presentation last fall by streaming service executives to Bezos, who was unhappy that Prime Video’s update plans didn’t effectively spotlight the service’s AI/personalization capabilities. This led the company to abandon its original plan and launch Lighthouse.
In other Amazon news, PYMNTS wrote last week about a new PYMNTS Intelligence study showing that while Walmart maintains a commanding lead when it comes to routine shopping, especially groceries, Amazon benefits on purchases that consumers research, plan and deliver.
“Survey findings point to a broader shift in consumer behavior. Shoppers are increasingly choosing the most appropriate retailer for each purchase, rather than just shopping at the most convenient location,” the report said.
“This creates new opportunities for merchants who can connect physical stores, digital experiences, and flexible payment options into one seamless journey.”
The study also found a “reversal of traditional retail logic,” PYMNTS wrote. Retailers have long viewed weekly purchases as a foundation for larger purchases, but new data shows that relationship is softening. Customers still rely on Walmart for everyday items, but they increasingly rely on Amazon for more planned, higher-value purchases.
“In other words, frequently visited stores no longer warrant a larger share of discretionary spending,” the report added. “As shoppers become more comfortable moving between physical stores and digital channels, retailers have an opportunity to rethink how they connect in-store visits with online engagement, personalized offers, and payment experiences to help customers complete more purchases in one ecosystem.”
