This blog was updated on August 6, 2025.
AI is reshaping how brands advertise on Amazon. From generative content tools to predictive bidding and audience automation, Amazon continues to roll out advanced AI capabilities that are changing the game for enterprise sellers.
If you’re an established brand on the marketplace, you already know that manual ad management can only take you so far. The competition is fierce, ad costs are rising, and consumer behavior keeps changing. AI-driven advertising strategies take the guesswork out of optimization and help you maximize your return on ad spend (ROAS).
In this blog, we’ll break down exactly how AI is changing advertising on Amazon and highlight the most effective AI-driven strategies you should be using.
The Evolution of Amazon Advertising: From Manual to AI-Driven
The days of manually adjusting bids, selecting keywords, and constantly tweaking campaigns are fading. While these elements still matter, AI has introduced automation and intelligence that take performance to a new level.
Amazon has been integrating AI into its advertising platform for years, but the technology has become even more sophisticated. Advertisers can now use machine learning to analyze massive amounts of data, predict consumer behavior, and optimize ad performance in real-time.
Some of the most powerful AI-driven advertising tools on Amazon include:
- Amazon Marketing Cloud (AMC): Offers deep data insights and advanced audience segmentation. AMC now supports natural language queries, allowing brands to access insights by simply typing prompts like “Show my top-performing creatives by ROAS in Q2,” without requiring SQL knowledge
- Amazon DSP (Demand Side Platform): Uses AI to automate ad placements across Amazon and third-party sites. Advertisers can manage these campaigns via Amazon Advertising Console.
- AI-Driven Bid Management: Adjusts bids based on competitor activity, shopper intent, and historical data. Brands can activate this feature within Sponsored Ads settings or DSP campaigns.
- AI-Powered Demand Forecasting: Helps predict future product demand using sales trends and external factors. Available in Seller Central’s demand planning tools.
- AI-Integrated Inventory Management: Automates stock replenishment to prevent overselling or stockouts. Found within Amazon Supply Chain tools and select third-party platforms.
- Generative AI for Content Creation: Streamlines the development of product listings, enhanced imagery, and engaging descriptions. Amazon’s generative AI also supports auto-generated product videos, multimodal creatives, and customizable brand voice.
- AI-Driven Selling Assistant (Project Amelia): Provides personalized sales insights, business recommendations, and operational support. Found in Seller Central’s AI-driven insights section.
How to Use AI-Driven Strategies for Maximum Impact
AI isn’t just about automating tasks. It’s about making smarter, data-driven decisions that can transform the way you advertise on Amazon. AI makes it easier to refine audience targeting, enhance ad creatives, optimize bidding strategies, and improve inventory management with unprecedented accuracy. In the following sections, we’ll explore specific AI tools, how they function, and how you can use them to stay ahead of the competition.
1. Amazon Generative AI and Video Generator: Creating High-Impact Content
Amazon’s generative AI tools, including the AI-powered Video Generator, Audio Generator, and Amazon Creative Studio, streamline the creation of compelling content for product listings and ads. Brands can generate professional-quality video and audio ads using just a product URL or ASIN—no production team required. These assets can be used in Sponsored Brands Video Ads, A+ Content, and product pages to boost engagement and conversions.
With Amazon’s Generative AI for Product Listings, you can automatically generate optimized product descriptions, bullet points, and A+ Content. The AI supports multimodal creative generation, combining text, product data, imagery, and now audio to deliver dynamic, tailored ad assets. You can also customize the brand voice to ensure all AI-generated content aligns with your brand’s tone, style, and messaging guidelines.
Amazon Creative Studio enhances visual and audio content creation with AI-generated images, videos, and 30-second audio ads, enabling brands to produce high-quality ads at scale without extensive design or production experience. For example, a small retailer can create a professional video ad for a new product in minutes, leveling the playing field with larger brands.
To start using these tools, log into Seller Central > Advertising Console > Content Tools, or explore Amazon Creative Studio within the Amazon Advertising Console. Note that access to some features, like advanced Creative Studio tools, may require eligibility based on your advertising account status.
2. Predictive Bidding: Let AI Optimize Your Ad Spend
One of AI’s greatest strengths in Amazon advertising is predictive bidding, which eliminates the need for manual bid adjustments. AI continuously analyzes real-time data, including competitor activity, shopper intent, and historical performance, to determine optimal bid amounts. This maximizes visibility to the right audience while controlling costs and improving ROAS.
To activate predictive bidding, navigate to Amazon Advertising Console > Sponsored Ads > Bidding Strategies and select automated bid adjustments. For more advanced AI-driven bidding, Amazon DSP Performance+ offers programmatic ad solutions that dynamically optimize bids based on specific KPIs like ROAS or cost-per-acquisition (CPA). This feature leverages Amazon’s deep shopper insights to refine bids in real time.
While AI streamlines much of the analysis, regularly monitor bid recommendations in the Advertising Console to ensure alignment with your profit margins and sales goals. Note that access to DSP Performance+ may require eligibility based on your advertising account status.
3. Dynamic Ad Creatives: Personalization at Scale
AI is revolutionizing display ad creation by replacing static images and generic messaging with dynamic ads that adapt in real time. Powered by Amazon’s AI, these ads adjust based on browsing behavior, past purchases, and engagement patterns, delivering personalized content that reduces ad fatigue and boosts conversions.
To access these AI-powered creative tools, navigate to Amazon DSP > Creative Management, which offers automated testing and recommendations for optimizing images, headlines, and descriptions. Dynamic Creative Optimization (DCO) tailors ads to individual viewers, ensuring relevance and minimizing redundancy. Regularly reviewing engagement data in the Advertising Console helps keep AI-generated ads aligned with your brand messaging and audience expectations.
Note that access to advanced DSP features, including DCO, may require eligibility based on your advertising account status.
4. Amazon DSP Performance+: Enhancing Ad Performance with AI
Amazon DSP Performance+ is an AI-powered solution that enhances the performance of video and display ads both on and off Amazon. Unlike “regular” Amazon DSP, which requires manual setup and ongoing adjustments, Performance+ leverages AI to automate key aspects of campaign management. It dynamically creates audience segments based on Amazon’s deep shopper insights, optimizing campaigns in real-time to improve efficiency and maximize ROAS.
As of 2025, Performance+ includes retail-aware targeting that automatically suppresses ads for out-of-stock or low-inventory products, as well as lookalike audience modeling powered by generative AI to identify high-converting shopper profiles. Additionally, the platform now features video placement optimization, using predictive models to prioritize placements most likely to drive conversions — not just impressions or views.
While traditional DSP provides performance reporting that requires manual adjustments, Performance+ continuously refines bidding strategies and ad placements using AI-driven recommendations. This AI-powered enhancement streamlines DSP campaign setup, making it easier for brands to scale their advertising efforts without requiring deep expertise in programmatic advertising.
To start using this tool, visit the Amazon Advertising Console and navigate to DSP Performance+.
5. AI-Powered Audience Targeting: Reaching the Right Shoppers
Finding the right audience is critical for effective advertising. AI simplifies this by analyzing vast amounts of shopper data, identifying high-converting segments, and automatically refining targeting strategies with precision.
Use Amazon DSP and AMC > Audience Insights to access deep insights into customer demographics, interests, and shopping behaviors. AMC’s SQL Generator allows advertisers to create custom audiences using natural language prompts, such as “Find shoppers interested in organic pet products,” without requiring technical expertise.
AI also powers retargeting campaigns to re-engage past visitors and cart abandoners with personalized messaging, improving conversion rates. These features can be activated directly within DSP campaign settings.
For enhanced targeting, AMC integrates with the ads data manager, enabling brands to combine first-party data from platforms like Salesforce with Amazon’s shopper insights for more precise audience segmentation. Note that access to AMC and certain DSP features may require eligibility based on your advertising account status.
To get started, navigate to Amazon Advertising Console > DSP > Campaign Settings or AMC > Audience Insights.
6. Automated Keyword Harvesting: Discovering High-Performing Keywords
Keyword optimization is a cornerstone of Amazon advertising. Instead of manually researching keywords, AI continuously analyzes search trends, shopper queries, and competitive performance to identify high-performing keywords in real time.
As of 2025, Amazon’s AI-driven keyword harvesting integrates with dynamic creative optimization tools, automatically updating headlines, product copy, and video scripts generated by Amazon’s Creative AI to reflect high-performing keywords. This ensures consistent, conversion-optimized messaging across all ad formats. Additionally, integration with AMC enables cross-channel keyword insights, aligning keyword strategies with broader shopper data for maximum impact.
To use this feature, navigate to Amazon Advertising Console > Keyword Management to access native AI-driven keyword harvesting. For deeper insights, integrate third-party AI tools like Helium 10 or Jungle Scout, which complement Amazon’s capabilities with advanced keyword intelligence. AI-driven keyword harvesting supports one-click automation, seamlessly updating Sponsored Ads campaigns with optimized keyword lists.
7. AI-Powered Demand Forecasting: Smarter Inventory Management
AI-powered demand forecasting enables brands to predict future product demand using historical sales data, seasonal trends, and external factors like market shifts, ensuring more accurate inventory planning.
Amazon’s Demand Forecasting Tools, accessible within Seller Central and Amazon Supply Chain, leverage AI to analyze data and provide precise inventory recommendations. These insights minimize the risk of stockouts or overstocking, optimizing fulfillment efficiency and maintaining a steady supply. By integrating with Amazon Marketing Cloud (AMC), demand forecasting also provides cross-channel insights, aligning inventory strategies with broader shopper behavior trends.
You can align advertising strategies with forecasted demand, such as increasing ad spend on high-demand products before peak seasons or scaling back on slower-moving inventory. AI also helps anticipate unexpected demand spikes, ensuring product availability during critical periods.
To get started, navigate to Seller Central > Inventory Planning to review AI-generated demand forecasts and optimize stock levels. Note that access to advanced forecasting features may depend on your account eligibility within Seller Central or Amazon Supply Chain.
8. Project Amelia: AI-Powered Selling Assistant
Amazon’s Project Amelia is a generative AI assistant designed to support brands by offering sales insights, business recommendations, and operational assistance.
Project Amelia helps you track performance, optimize pricing, and identify sales trends. Brands can access this AI-powered assistant within Seller Central, where it provides customized suggestions based on sales patterns and advertising data. The assistant can highlight underperforming products, suggest ad optimizations, and recommend pricing adjustments, allowing sellers to make informed decisions quickly.
Beyond analytics, Project Amelia also offers customer service enhancements by automating responses to common seller inquiries, saving time and streamlining operations. As Amazon continues to refine AI-driven seller support, Project Amelia is expected to play a larger role in helping you manage your businesses more effectively.
Channel Key Takeaway
AI-driven advertising is no longer optional. It’s the key to staying competitive on Amazon. Machine learning and automation help optimize bidding, personalize ad creatives, and refine audience targeting, all while improving efficiency and scaling growth.
Now is the time to embrace these AI-powered tools and integrate them into your Amazon Advertising strategy. By leveraging advanced automation, you can unlock stronger performance, maximize ROI, and future-proof your Amazon business.
Ready to take your advertising to the next level? Contact us today to learn how AI can help you achieve smarter, more effective campaigns on Amazon.
