Amazon (AMZN) Switches From Algo To AI For Prime Video Recommendations

Ever hit a dead end when looking for the next thing to watch on Prime Video? The algorithm can sometimes be irritating and not know which recommendations you may want to consider next. Amazon is trying to solve this issue and ‘AI Topics’ is the most recent solution for this. Some users can now see these AI Topics according to their interests, helping them discover the next piece of content to consume on the platform.

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Amazon is primarily an e-commerce company but ever since its successful entry into cloud business, few doubt the company’s ability to adapt to new technologies. The company generates revenue from third-party sellers, physical stores, and subscription services in addition to its eCommerce and AWS business. It is among the many tech companies that want to be the leader in AI, so much so that it makes its own AI chips to satisfy internal AI computation needs. The Trainium and Inferentia AI chips are specially designed to reduce costs and accelerate machine learning. Since these chips are designed for specific tasks that Amazon needs them to perform, they not only save cost but also reduce Amazon’s reliance on chipmakers like Nvidia and Broadcom.

With such a rich history of innovation, Amazon wants to continue the trend. It has been experimenting with adding AI features to its Prime offerings. Just last month, it introduced AI recaps, which are AI-generated highlights of whole seasons, episodes, or even a small portion within an episode. This helps users avoid spoilers, and reconnect with shows they haven’t watched in some time and same time by removing the need to watch older content when catching up with their favorite shows.

With AI Topics, Amazon is taking personalization to the next level. The ability to sift through thousands of content pieces to create recommendations for customers will save the users time when discovering new content. The technology is only available in beta to select users right now, but it shouldn’t take long for it to be available to all users.

Amazon ranks 1st on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 286 hedge fund portfolios held AMZN at the end of the third quarter which was 308 in the previous quarter. While we acknowledge the potential of AMZN as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.