Amazon Cracks Down on AI Shopping Assistant Over Identity Disclosure

Amazon sent a sternly worded cease-and-desist letter to Perplexity, a startup behind the AI-powered shopping assistant Comet, after warning the company multiple times that its agentic browser was violating Amazon's terms of service by not identifying itself as an agent. The e-commerce giant demanded that Perplexity prohibit Comet users from using their AI assistants on Amazon, marking Amazon's first legal salvo against an AI company. Perplexity publicly confirmed the development in a blog post titled "Bullying is not innovation," calling the threat a "threat to all internet users." According to Perplexity, the company's argument is that since its agent is acting on behalf of a human user's direction, the agent automatically has the same permissions as the human user, and therefore does not need to identify itself as an agent. Amazon, however, responded by pointing out that other third-party agents working at the behest of human users do identify themselves, citing examples such as food delivery apps and the restaurants they take orders for. "It is how others operate," Amazon stated. Perplexity's CEO, who was not named in the article, lamented the development, stating that the threat is a "threat to all internet users." The company has been working on developing its AI-powered shopping assistant, Comet, which uses agentic browsing to help users find products on Amazon. Comet's technology allows users to search for products on Amazon without having to explicitly identify themselves as agents, which Perplexity argues is a more natural and user-friendly experience. The dispute highlights the growing tension between tech companies and startups working on AI-powered technologies. As AI becomes increasingly prevalent in our daily lives, companies are struggling to define the boundaries and regulations surrounding its use. Amazon's decision to take a hardline stance on Perplexity's agentic browsing technology may set a precedent for other companies working on similar technologies. Perplexity has not publicly stated whether it will comply with Amazon's demands, but the company has vowed to continue developing its AI-powered shopping assistant. The dispute is likely to have far-reaching implications for the tech industry, as companies grapple with the challenges and opportunities presented by AI-powered technologies.