Amazon forms dedicated agentic AI group as next “multi-billion business” for AWS

Amazon‘s new focus on agentic AI represents a significant strategic shift that could reshape how the company delivers automated services to customers. This development, led by key AWS executives, aims to create AI systems that can independently perform complex tasks without continuous user prompting—potentially transforming everything from business operations to consumer interactions with Amazon’s ecosystem.

The big picture: Amazon has established a dedicated group focused on agentic artificial intelligence under the leadership of AWS executive Swami Sivasubramanian, who will report directly to AWS CEO Matt Garman.

• According to an internal email viewed by Reuters, Garman believes “agentic AI has the potential to be the next multi-billion business for AWS.”
• Sivasubramanian, previously vice president of AI and data, will spearhead the initiative to develop AI systems that can act autonomously on behalf of users.

Why this matters: This strategic move positions Amazon to compete in the rapidly evolving autonomous AI space where systems can complete complex tasks with minimal human intervention.

• The shift aligns with Amazon’s recent update to its voice service Alexa, which will incorporate more advanced autonomous capabilities when released to select customers later this month.
• Garman emphasized in his email that “AI agents are core to this next wave of innovation,” suggesting Amazon sees agentic AI as fundamental to its future growth strategy.

Behind the numbers: AWS has long been Amazon’s profit center, making this reorganization particularly significant for the company’s financial outlook.

• Alongside the agentic AI announcement, AWS senior vice president Peter DeSantis revealed additional restructuring that will move AI groups Bedrock and SageMaker under the compute organization.
• DeSantis stated these changes will help “accelerate innovation” across AWS’s business units and technical capabilities.

Key details: The reorganization extends beyond the new agentic AI group to include broader structural changes within AWS.

• The restructuring includes moving hardware engineering under the compute organization and creating a new group that combines customer experience and commerce.
• Despite these potentially significant strategic shifts, Amazon’s stock showed minimal reaction, trading down less than 1% to $204.81.