Amazon Web Services is focusing on the future, anticipating AI challenges years in advance to deliver “real value” to its customers – Amazon.com (NASDAQ:AMZN)

Amazon.com Inc Amazon takes a comprehensive approach to enterprise AI to then provide customers with the tools they need.

What you should know: On Monday in CNBC’s “Closing Bell: Overtime,” the CEO of Amazon Web Services (AWS) said, Matt Garman emphasized that AI is about much more than the chatbots that get most of the attention.

“It’s not just an application, it’s not just a chatbot that you can put on your website and have it talk to your customers, which is a very cool application by the way. But a lot of customers aren’t going to get the real value out of this technology if they leave it at that,” Garman said.

Amazon offers much more than just chatbot capabilities. AWS offers a range of services to help customers set up guardrails for building secure AI applications, combine multiple large language models for optimal performance, index enterprise data to create reliable sources for answering questions, and more, he explained.

Amazon has a diverse customer base that uses AWS and Amazon’s AI technology to perform a wide range of tasks. Pfizer Inc PFEFor example, uses generative AI through AWS and Bedrock for drug discovery, Garman said, adding that the company recently estimated that AWS will save it $1 billion this year in finding and developing new drug offerings.

According to Amazon’s website, Bedrock offers a selection of powerful base models from leading AI companies, as well as a wide range of features needed to responsibly build generative AI applications, through a single API.

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This week, new reports emerged suggesting Amazon could invest about $1 billion this year to expand its AI offerings. When asked about the cost, Garman told CNBC that Amazon has a massive advantage over competitors because of the company’s experience in cutting costs at scale.

Amazon has been working on AI for years and has always looked ahead to the future, said the AWS CEO. Nothing has changed in that regard.

“We have teams thinking about how much power we’re going to need over the next three, five or seven years. How do we make sure we have enough? And the amounts are getting bigger and bigger, so that’s something we need to think about,” Garman said.

“AWS and Amazon as a whole have been the world’s largest buyers of renewable energy over the last few years because we focus on how we think ahead… we think the same way about the supply chain, we think the same way about working with many of our partners. We think about storage, we think about memory, we think about processors, we think about networking – all of those things are super important to us so customers don’t have to worry about that.”

AMZN price promotion: According to Benzinga Pro, Amazon shares closed Monday up 2.04% at $197.20.

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