With the holiday shopping season looming, Amazon generative AI will allow advertisers to reach more of an audience, according to Reuters. The company is using data from its Prime subscribers and AI to improve ad targeting.

Amazon generative AI is predicting that targeted ads will draw more shoppers and advertisers to its platform. Andy Jassy, Amazon chief executive, said that machine learning is helping the company to present more relevant ads to shoppers.

"When (advertisers) have to think about budget decisions, they're going to choose (ads) that have large volume and perform better. I think both of those are real advantages in our advertising area right now," Jassy said.

Andy Friedland, former ad executive at Amazon and chief revenue officer at Swiftly, a retail technology platform, said that the “ability to show dozens, if not thousands, of variations of your ad personalized to the user” is the main benefit in using generative AI.

Amazon also unveiled that Amazon Ads has launched an AI image generation tool in beta. It is “designed to remove creative barriers and enable brands to produce lifestyle imagery that helps improve their ads’ performance.” For example, putting a toaster on a kitchen counter instead of having it on a plain white background can make click-through rates 40% higher.

“Providing tools to make image generation simple and easy is another way for us to support advertisers while also making the ads our customers see more engaging and visually rich,” said Colleen Aubrey, senior vice president of Amazon Ads Products and Technology. “It’s a perfect use for generative AI—less effort and better outcomes.”

Last week Amazon announced an expansion of Amazon Prime Air, its drone delivery program.