Amazon has initiated legal proceedings against Perplexity, seeking to prevent the company from using its AI agent, Comet, to make purchases on its platform. The lawsuit, filed in a federal court in San Francisco on November 4, 2023, highlights a growing conflict between established online retailers and emerging AI technologies.
The crux of Amazon’s complaint is that Perplexity’s Comet acts on behalf of users in a way that violates Amazon’s terms of service. According to the filing, Amazon alleges that Perplexity is committing “computer fraud” by failing to disclose when Comet is shopping for a real person. This situation raises significant concerns about transparency and compliance within the rapidly evolving landscape of artificial intelligence.
The legal action comes at a time when major players in the tech industry are exploring the potential for AI to revolutionize online shopping. Recent developments, such as a partnership between PayPal and OpenAI to facilitate instant payments within ChatGPT, underscore the growing ambition for AI to streamline purchasing processes. However, this shift could pose risks for online retailers like Amazon, which relies heavily on advertising revenue generated by promoted products on its site.
Perplexity has responded vigorously to Amazon’s claims, characterizing the lawsuit as an attempt by a dominant player to stifle innovation. In a statement provided to SiliconRepublic.com, Beejoli Shah, a spokesperson for Perplexity, accused Amazon of “litigious bullying” and emphasized that AI user agents should be treated like any other shoppers. “Your AI assistant works for you, not for Perplexity, and not for Amazon,” Shah stated.
In its legal filing, Amazon asserts that Perplexity’s actions breach guidelines that prohibit the use of data mining and similar data extraction tools. The company’s complaint argues for a straightforward request: that Perplexity must be transparent when deploying its artificial intelligence. Amazon compares Perplexity’s actions to those of an intruder, asserting that the unauthorized use of code constitutes a form of trespass.
In defense of its practices, Perplexity argues that its user agents do not engage in activities typically associated with bots, such as crawling or scraping data. In a blog post, the company clarified that user agents act solely within the permissions granted by their users and are extensions of those users’ requests.
The dispute between Amazon and Perplexity illustrates the ongoing tension between traditional retail models and the emerging capabilities of AI technologies. As companies navigate these uncharted waters, the implications for the future of agentic AI and its role in online commerce will become increasingly significant.
This legal battle may set precedents that shape the relationship between AI developers and established e-commerce platforms. As this situation unfolds, stakeholders across the tech and retail sectors will be watching closely for its potential impact on innovation and consumer choice.
