Business

Amazon retires Rufus chatbot and centers shopping strategy on Alexa with new 'Alexa for Shopping'

Amazon is shutting down its standalone Rufus chatbot and rolling its capabilities into a new Alexa-centered e‑commerce tool called Alexa for Shopping.

Amazon has announced it will discontinue its standalone Rufus chatbot and make the Alexa assistant the centerpiece of its AI‑based shopping strategy. The company introduced a new e‑commerce tool called Alexa for Shopping on Wednesday.

What Alexa for Shopping does

Alexa for Shopping merges the capabilities of Rufus with Alexa+ features. The service can answer shoppers' questions, compare products, and execute transactions on behalf of users. Because it can access past purchase history and other user data, it can provide highly personalized recommendations.

The feature is integrated into Amazon's search: when a user browses a product category, a chat window appears among the results offering relevant information and suggested items. Shoppers can set a price target, and when a chosen product reaches that price the system will either send a notification or complete the purchase automatically according to the user's settings.

Alexa for Shopping does not require Prime membership. The functionality is available on Amazon's website and mobile app, and on Echo Show smart displays.

Rufus capabilities and advertising

Although Rufus will cease to exist as a separate chatbot, its recommendation engine and features that rely on purchase history are being incorporated fully into the new solution. Daniel Rausch, head of the Alexa business, said Amazon has a substantial advantage because it has direct access to customer reviews, a vast product catalog, and real‑time inventory and logistics data.

Embedding Alexa for Shopping into search results may create tension with third‑party sellers on Amazon’s marketplace, who pay heavily for sponsored product placements — a major source of the company’s advertising revenue. Rausch said ads will continue to appear in the new tool where they are relevant and enhance the shopping experience, and that the system aims not to artificially narrow results but in some cases to surface a broader range of options.

Competitive context

The move highlights intense competition in AI‑driven shopping solutions, involving players such as OpenAI, Google and Perplexity. Rausch also noted that OpenAI recently removed the direct payments feature from ChatGPT and has shifted focus toward applications that work with retail partners.

Related event

The topic will also be discussed in the cybersecurity track of the Financial IT conference: the Portfolio‑organized Financial IT 2026 event on "AI boom, fintech innovations, digital transformation" takes place on May 28. Registration details are available on the conference website.

The cover image is illustrative.