Amazon is taking its artificial intelligence shopping tools beyond its own marketplace, licensing the technology to third-party retailers for the first time. Tapestry, the parent company behind brands like Kate Spade, is the first outside retailer to use the system.
What the deal includes
The licensing arrangement gives Tapestry access to Amazon's AI-powered shopping features, including personalized recommendations, product search improvements, and checkout optimization. These tools were previously only available on Amazon's own site and through its third-party seller services.
For Tapestry, the deal means its e-commerce sites can now deliver a shopping experience powered by the same algorithms that drive sales on Amazon. The company hasn't said which of its brands will roll out the technology first or how soon customers will see changes.
Why Amazon is selling its AI
Amazon has invested heavily in machine learning for retail over the past decade. By licensing that technology to other retailers, the company creates a new revenue stream that doesn't depend on customers buying from Amazon itself. It also lets Amazon gather data on how its AI performs in other retail environments, which could help refine the tools further.
The move echoes a broader trend among big tech companies. Google and Microsoft have long sold cloud-based AI services. But Amazon's offering is unique in that it comes directly from the company's own storefront — a real-world testing ground for millions of transactions a day.
Amazon hasn't announced a pricing model or a list of other retailers that might be next. The company said it is in talks with several unnamed firms but did not provide a timeline. Smaller retailers may find the technology expensive, but larger chains could see it as a way to compete with Amazon itself — by using the same tools Amazon uses to win customers.
Tapestry, which also owns Coach and Stuart Weitzman, is a logical first customer. The company operates hundreds of stores and a significant e-commerce business, so it can test the technology at scale. Whether the AI will help Tapestry boost sales or just match Amazon's experience remains an open question.
