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Deepwater Asset Management co-founder Gene Munster said that AI-powered shopping bots pose a growing threat to Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN), and that the e-commerce giant must rethink this business model.

Munster took to X on Sunday and argued Amazon could "kill the golden goose" by embracing an advertising model that directs buyers to retailers and brands, including those that do not sell directly through Amazon.

He added that Amazon’s transition into "an AI infrastructure company" could support such a strategy.

A growing threat to $AMZN’s retail business is shopping bots. One answer is for them to kill the golden goose, embrace the ad model, and connect buyers directly to all retailers and brands not just the ones on the platform.

Good thing they’re now an AI infrastructure company.… https://t.co/OsrBwcwB6Z

— Gene Munster (@munster_gene) November 1, 2026

AI Bots Threaten Amazon’s Edge

In September, Amazon blocked Meta Platforms, Inc. (NASDAQ:META)’s Muse shopping assistant, saying access by an unauthorized AI agent violated its conditions of use.

AI shopping assistants could change how consumers discover and purchase products, posing a challenge for Amazon’s core model. Previously, Munster warned that AI-powered bots could become the starting point for product searches and purchases, threatening Amazon’s discovery advantage. While Amazon benefits from fast delivery and customer trust, its ability to help shoppers find products faces growing competition.

Amazon Expands Its AI Shopping Push

Notably, last week, The Information reported that Amazon has now expanded its Shop Direct initiative, which features products from brands selling elsewhere. The company now lists 250 million such products, potentially reducing shoppers’ need for external agents like Meta’s Muse that shop across retailers.

As AI increasingly shapes online shopping, Amazon is looking to retain its position as the starting point for product discovery rather than lose shoppers to third-party AI assistants. Its Buy for Me agentic shopping tool extends that strategy by completing purchases on external merchant websites on customers’ behalf. However, eMarketer says Amazon faces a customer trust challenge. A May 2026 survey across the U.S. and five major European markets found only 25% of shoppers considered Amazon’s top search results the best match for their queries, while 24% viewed them as bestsellers and 23% as paid placements.

Benzinga’s Edge Rankings place AMZN in the 80th percentile for growth and the 64th percentile for quality. Benzinga’s screener allows you to compare AMZN’s performance with its peers.

Price Action: Year-to-date, AMZN stock has surged 5.62%, as per Benzinga Pro. During Friday’s pre-market trading session, the stock was trading 6.48% lower at $228.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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