Amazon’s new AI shopping assistant, Rufus, is projected to generate substantial revenue gains for the company, with analysts at Bank of America estimating potential earnings of $700 million by 2025. The AI tool, which helps customers make purchasing decisions through natural language interactions, is expected to drive increased customer engagement and boost conversion rates on Amazon’s platform. Rufus leverages Amazon’s vast product catalog and customer review data to provide personalized shopping recommendations and answer product-related questions. The analysis suggests that Rufus could improve conversion rates by 0.5% to 1%, leading to significant revenue growth. The AI assistant’s ability to understand context and provide detailed product comparisons is seen as a key differentiator in the e-commerce space. Bank of America analysts note that Rufus represents a strategic investment in AI technology that could help Amazon maintain its competitive edge in online retail. The tool’s potential impact extends beyond direct revenue generation, as it may also reduce customer service costs and improve overall shopping experience. While currently in beta testing with select US customers, the projected success of Rufus highlights the growing importance of AI-powered shopping assistants in e-commerce and Amazon’s commitment to integrating advanced AI capabilities into its core business operations.
Source: https://www.businessinsider.com/amazon-predicts-700-million-potential-gain-ai-assistant-rufus-2025-4