AI shopping agents may threaten Amazon and Walmart ad revenue
AI-powered shopping agents are creating a strategic dilemma for major retailers like Amazon and Walmart, who dominate the US retail media market. These companies rely heavily on advertising revenue, which accounts for a significant portion of their earnings, but AI agents that shop on behalf of consumers could bypass traditional ad placements. Morgan Stanley projects that such agents could…
Key points
- Morgan Stanley projects AI agents will account for 10-20% of US e-commerce by 2030.
- Amazon blocked Meta's Muse agent; Walmart launched infrastructure to support third-party agents.
- Amazon's ad revenue growth slowed to 11% year-over-year in Q3, its lowest in four years.
Amazon and Walmart have adopted contrasting strategies. Amazon blocked Meta's Muse agent in September, citing unauthorized access, and previously won a court order against Perplexity's Comet, though that ban was later overturned. In contrast, Walmart launched infrastructure in October to support third-party agentic commerce, allowing shoppers to link agent profiles to their accounts with spending limits. Despite these developments, Amazon CEO Andy Jassy stated there is currently no meaningful impact on ad revenue, though the company's ad growth slowed to 11% year-over-year in the third quarter, its lowest pace in nearly four years.
Industry analysts suggest this shift is an evolution rather than an existential threat. Brands are expected to increase retail media spending by 22.6% in 2026. Companies like Procter & Gamble and L'Oreal are adapting by making product data more accessible to AI agents. Consultants advise brands to prepare for changing discovery methods while maintaining current retail media budgets for now.
Model page: Muse →
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Analysis:AI shopping agents could threaten Amazon and Walmart's ad business
channelnewsasia.com · 4 November 2026
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