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HomeTechnologyAmazon Rufus chatbot explained: What is this tool that CEO Andy Jassy is betting on to generate $10 billion annual sales

Amazon Rufus chatbot explained: What is this tool that CEO Andy Jassy is betting on to generate $10 billion annual sales

Amazon’s AI chatbot Rufus is driving major growth, helping users find and compare products conversationally. CEO Andy Jassy projects it could add over $10 billion in annual sales.

November 04, 2025 / 18:26 IST
rufus

Amazon CEO Andy Jassy has revealed that Rufus, the company’s AI-powered shopping chatbot, could contribute more than $10 billion in additional annual sales. Introduced in August 2025, Rufus is Amazon’s latest step in integrating artificial intelligence into its retail ecosystem to improve product discovery, personalization, and user engagement.

What is Amazon Rufus?
Rufus is an AI shopping assistant integrated within the Amazon app and desktop platform. It’s designed to help users search, compare, and purchase products using natural language queries. Trained on Amazon’s extensive product catalog and broader web data, Rufus responds conversationally to user questions, making shopping faster and more intuitive. For instance, a user can ask, “What should I look for when buying wireless earbuds?” or “Which is better — OLED or QLED TV?” Rufus then provides relevant answers, comparisons, and product recommendations directly within the shopping interface.

How Rufus works
When users interact with Rufus, the chatbot analyzes the query, interprets intent, and draws insights from Amazon’s massive database to deliver precise results. It’s capable of comparing specifications, summarizing reviews, and suggesting alternatives — all in real time. The assistant also helps customers discover new products, find gifting ideas, and understand what features to prioritize when shopping across categories.

Rufus appears as a chat icon within the Amazon app. Tapping it opens a conversational window where shoppers can type or speak questions. The chatbot uses a combination of generative AI and retrieval-based models to deliver accurate, context-aware responses.

Why Andy Jassy is betting big on Rufus
During Amazon’s Q3 earnings call, Jassy said that Rufus has already been used by 250 million shoppers, with a 60% higher purchase completion rate among users who engage with the chatbot compared to those who don’t. The feature has seen a 140% year-on-year growth in active users and a 210% rise in interactions. Jassy called Rufus one of Amazon’s key consumer AI initiatives that combines product data, shopping behavior, and conversational intelligence to boost conversions and customer satisfaction.

As Amazon expands Rufus globally, the company plans to refine its responses through customer feedback and new AI improvements. With its growing adoption, Rufus represents Amazon’s strategy to make shopping more personalized and efficient — and potentially one of its most profitable AI-driven tools yet.

 

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first published: Nov 4, 2025 06:25 pm

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