Amazon is facing significant challenges as artificial intelligence transforms e-commerce. CEO Andy Jassy acknowledged in June that AI agents will increasingly influence shopping, travel, and daily tasks. By October, he announced plans to partner with third-party AI providers while Amazon sought a leader for corporate development in "agentic commerce." This shift highlights the urgency for Amazon to adapt as competitors like OpenAI and Microsoft introduce AI-driven shopping tools that allow consumers to shop without visiting traditional retail sites. According to McKinsey, agentic commerce could generate $1 trillion in U.S. retail revenue by 2030, posing a threat to Amazon's market share and margins. Retail analyst Sucharita Kodali pointed out that using AI agents could mean retailers pay fees for transactions that would typically occur on their own platforms. Companies like Walmart and Shopify are navigating this landscape by collaborating with AI firms while developing their own technologies. Meanwhile, Amazon has taken steps to block AI agents from accessing its website, even filing a lawsuit against Perplexity for scraping its data without permission. Despite this defensive posture, Amazon is investing in its own AI tools, including the shopping chatbot Rufus and the Buy For Me agent, aiming to enhance user experience and maintain control over its customer data. The emergence of AI shopping agents is still in its early stages, with mixed results reported by early users. For instance, glitches in AI tools have frustrated consumers, as seen when one user received incorrect product images during a search. While Amazon is strategically allowing some subsidiaries to experiment with AI agents, it remains cautious about sharing its most valuable data, like customer reviews and sales rankings. As the landscape evolves, Amazon's approach will need to balance collaboration with competition to safeguard its dominant position in e-commerce.