Amazon Thinks AI Is About to Change the Way We Shop. Goodbye, Search Bar.

Amazon is positioning AI as the next major shopping interface, replacing keyword search with conversational assistants like Alexa for Shopping. The article says the tool is already showing traction, with more than 300 million customers using the former Rufus assistant last year and roughly $12 billion in additional annualized sales driven by it. Amazon also reported strong Q2 fiscal 2026 results, including revenue of $200.6 billion and EPS of $5.75, while AWS revenue rose 36.7% and operating income increased 43%. Management raised 2026 capital spending to about $220 billion, largely for AI and cloud infrastructure, which supports growth but also weighs on free cash flow and increases debt. Wall Street remains constructive, with Citi reiterating Buy and a $325 target. The market takeaway is that AI is becoming a meaningful driver of Amazon’s retail, advertising, and cloud growth, but investors are balancing that upside against heavy investment and rising leverage.