Amazon wants shoppers to use Alexa, not Meta's Muse. Here's why the AI shopping battle is getting personal? Decoded here

Amazon is pushing customers towards its Alexa shopping assistant as Meta's Muse gains popularity. Here's why the two tech giants are competing for control of AI-powered shopping.

Amazon is making a direct pitch for its own AI shopping assistant as competition intensifies over who gets to guide consumers' online purchases. Chief Executive Andy Jassy has played down the threat from outside agents such as Meta's Muse, arguing that shoppers still find it easier to buy directly from retailers.

The comments came during Amazon's quarterly earnings call on Thursday, weeks after the company blocked Meta's Muse from accessing its online store. The dispute highlights a growing contest between technology companies over the future of online shopping, and who controls the relationship with customers.

Why Amazon blocked Meta's AI shopping assistant Muse

Amazon said in September that Muse's access to its store would breach the terms of use agreed to by its customers. Although Jassy did not name Meta's assistant during the earnings call, he questioned whether consumers were ready to let outside AI agents handle their shopping.

"Still not great, nor more convenient than coming to a retailer directly," he said, describing the experience offered by external shopping agents.

The concern for Amazon goes beyond which AI assistant customers prefer. If shoppers use an outside agent to find and buy products, they may no longer visit Amazon's website or app. That could reduce their exposure to the advertisements that are an important source of revenue for the retailer.

Jassy said, however, that external shopping agents were not responsible for Amazon's weaker-than-expected advertising performance in the third quarter.

Jassy told analysts that more than 400 million customers had used Alexa for shopping over the past year. Customer interactions with the assistant had increased 570% year on year, he said.

He also pointed to a spending difference between users and non-users. Customers in the US who shop through Amazon's assistant spend 50% more per order than those who do not, according to Jassy.

The figures underline why Amazon is keen to keep shoppers within its own ecosystem. An AI assistant that helps customers discover products and complete purchases could strengthen the company's hold on both shopping activity and advertising.

Meta Chief Executive Mark Zuckerberg said last week that more than 10 million people in the US and Canada had set up Muse since its launch in early September.

The assistant can connect with users' calendars, emails and other phone functions, allowing it to carry out tasks on their behalf. Shopping has emerged as a major use for the service. Zuckerberg said more than a quarter of Muse users had engaged in shopping, with the average purchase exceeding $200.

Meta has also secured partnerships with retailers including Shopify, Walmart and Best Buy, although Amazon has stayed out of the group.

Zuckerberg said the company was willing to work with businesses on arrangements that suited them, acknowledging that not every company wanted to adopt the technology immediately.

The emerging divide is clear: Meta wants its AI assistant to help people shop across different retailers, while Amazon is encouraging customers to begin and complete their purchases within its own services. The competition is increasingly about who gets to stand between shoppers and the products they want to buy.