Amazon is doubling down on AI automation with a new Agentic AI division, led by AWS executive Swami Sivasubramanian, to revolutionize how users interact with technology—eliminating manual prompts and unlocking the next billion-dollar opportunity in cloud computing. (Source: Image by RR)

CEO Matt Garman Calls Agentic AI the ‘Next Multi-Billion-Dollar Opportunity’

Amazon has established a new division dedicated to agentic AI, aiming to revolutionize automation for users by enabling AI systems to take proactive actions without requiring constant input. The initiative was revealed in an internal email from AWS CEO Matt Garman, who described agentic AI as a significant opportunity for Amazon Web Services (AWS), with the potential to become a multi-billion-dollar business. The new group will be led by AWS executive Swami Sivasubramanian, who previously served as vice president of AI and data. Under this structure, Sivasubramanian will report directly to Garman, underscoring the strategic importance of this AI initiative within Amazon.

Agentic AI, as reported in finance.yahoo.com, is designed to simplify user interactions by automating processes and reducing the need for manual prompts. This technology is already making its way into Amazon’s ecosystem, with the company recently showcasing new AI-driven capabilities in its Alexa voice assistant. Set for release later this month, the updated Alexa will incorporate agentic AI to anticipate user needs and execute tasks more seamlessly. Garman expressed confidence in the technology’s transformative potential, emphasizing that AI agents will be at the core of the next wave of digital innovation. Amazon sees this as an opportunity to accelerate customer-driven advancements and unlock new possibilities across its platforms.

Alongside the AI division’s launch, AWS senior vice president Peter DeSantis announced a series of internal reorganizations within Amazon’s cloud computing arm. These changes include shifting AI groups Bedrock and SageMaker, as well as hardware engineering, under AWS’s compute organization. Additionally, a new division is being formed to integrate customer experience and commerce operations, streamlining AWS’s approach to innovation. DeSantis noted that these structural changes are designed to enhance Amazon’s ability to rapidly develop and deploy AI-powered solutions while maintaining its competitive edge in cloud computing.

Despite these ambitious developments, Amazon’s stock saw a minor decline of less than 1%, closing at $204.81. While the immediate market reaction was muted, the company’s aggressive investment in AI and cloud computing signals a long-term strategy focused on AI-driven automation. As AWS remains Amazon’s primary profit engine, its continued push into advanced AI technologies like agentic AI could significantly shape the future of cloud computing, customer interaction, and digital automation.

read more at finance.yahoo.com