$Amazon (AMZN.US)$ is reportedly working on a new AI chatbot, codenamed "Metis," to compete with OpenAI's ChatGPT.

What Happened: Amazon's Metis is designed to provide real-time information and automate tasks using a technique called retrieval-augmented generation, reported Business Insider, citing people familiar with the project and an internal document.

The project is powered by Amazon's internal AI model, Olympus, and is expected to offer more up-to-date responses than other chatbots.

Metis is anticipated to function as an AI agent, automating complex tasks based on existing data. Amazon is aiming to launch Metis in September, coinciding with a major Alexa event, although the timeline is subject to change. The project is being led by Amazon's AGI team, headed by Rohit Prasad, a senior vice president and head scientist at Amazon.

Amazon CEO Andy Jassy has stated that nearly every division of the company is engaged in AI projects. As a leader in cloud computing, Amazon has been developing machine learning, a form of AI, for years. Jassy recently mentioned that Amazon's AI efforts are on track to generate over $1 billion in annual revenue, with expectations to drive "tens of billions of dollars" in sales in the coming years.

Amazon did not immediately respond to Benzinga's request for comment.

Why It Matters: Amazon's push into generative AI comes after a series of strategic moves and challenges. Earlier this year, Amazon's AI chatbot, Q, faced criticism for producing inaccurate outputs, known as "hallucinations." This was attributed to a rushed launch and the use of a less proficient AI model. Amazon has since been working to improve its AI capabilities.

Earlier this year, Amazon revealed that its generative AI business has reached a "multibillion-dollar" revenue run rate. During the company's first-quarter 2024 earnings call, Jassy highlighted the robust demand for AI, with customers eager to leverage the technology to transform their businesses and enhance customer experiences.

In May, Amazon rolled out AI-powered search features to its Fire TV devices, showcasing its commitment to integrating AI across its product ecosystem. The company confirmed that its Alexa-powered AI feature would be implemented within Fire TV's search, competing with other streaming devices like $Roku Inc (ROKU.US)$'s various streaming devices and $Apple (AAPL.US)$'s Apple TV.

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote