Amazon's Aggressive AI Sales Push: AWS Ramps Up Efforts to Compete with Google and Microsoft

Inside Amazon's new AI sales machine: More pressure, more pay, more speed

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. "This is a great time to partner with our sales teams for this #OneTeam effort," AWS explained in an internal memo obtained by Business Insider. These AWS staffers were asked to find at least one sales opportunity each month for Q, Amazon's AI assistant, and Bedrock, the company's AI platform. Then, the initiative asked employees to launch one Bedrock or Q customer workload. The final requirement, the "Ramp One" part, pushed teams to generate real revenue from these workloads. AWS created a leaderboard for everyone to see the top performers. With December 1 as the deadline, the company dangled prizes, including an evening of pizza and wine at an executive's home (with guitar playing as a possibility). This initiative is just one example of AWS trying to squeeze more out of its massive sales and support teams to be more competitive in AI. There's more pressure and urgency to sell AI products, along with new incentives, according to several internal documents and more than a dozen current and former AWS employees. Messaging from AWS CEO Matt Garman, previously the cloud unit's top sales executive, is to move even faster, these people said. They asked not to be identified because they are not authorized to speak to the press. Much is at stake for Amazon. OpenAI, Microsoft, and Google, alongside a slew of smaller startups, are all vying for AI supremacy. Though Amazon is a cloud pioneer and has worked on AI for years, it is now at risk of ceding a chance to become the main platform where developers build new AI products and tools. The revamped sales push is part of the company's response to these challenges. As the leading cloud provider, AWS has thousands of valuable customer relationships that it can leverage to get its new AI offerings out into the world. Many AWS sales teams have new performance targets tied to AI products. One team has to hit a specific number of customer engagements that focus on AWS's generative AI products, for instance. There are also new sales targets for revenue driven by genAI products, along with AI customer win rates and a goal based on the number of genAI demos run, according to one of the internal Amazon documents. Another AWS team tracks the number of AI-related certifications achieved by employees and how many other contributions staff have made to AI projects, one of the people said. Hitting these goals is important for Amazon employees because that can result in higher performance ratings, a key factor in getting a raise or promotion. Even roles that traditionally don't involve actively selling products are feeling pressure to find AI sales opportunities, according to Amazon employees who spoke with BI and internal documents. AWS software consultants, who mostly work on implementing cloud services, are now encouraged to find sales opportunities, blurring the line between consultants and traditional salespeople. The "Find One, Launch One, Ramp One" initiative includes AWS sales architects. These staffers traditionally work with AWS salespeople to craft the right cloud service for each customer. Now, they're being incentivized to get more involved in actual selling and are being measured on the results of these efforts. "Customers are interested in learning how to use GenAI capabilities to innovate, scale, and transform their businesses, and we are responding to this need by ensuring our teams are equipped to speak with customers about how to succeed with our entire set of GenAI solutions," an AWS spokesperson told BI. "There is nothing new or abnormal about setting sales goals," the spokesperson added in a statement. They also stressed that AWS sales architects are not "sellers," and their job is to "help customers design solutions to meet their business goals." There are "no blurred lines," and roles and expectations are "clear," the spokesperson also said. One particular concern among some AWS salespeople revolves around the company's history of saving cloud customers money. Some staffers told BI that they now feel the company is force-feeding customers AI products to buy, even if they don't need them. The people said this represents a shift in AWS's sales culture, which has mostly looked for opportunities to reduce customers' IT costs over the years. In some cases, salespeople have also been asked to boost the attendance of external AWS events. Several recent AWS-hosted AI events saw low attendance records, and salespeople were told to find ways to increase the number of registrations by reaching out to customers, some of the people said. AWS's spokesperson said customer attendance has "exceeded our expectations for a lot of our AI events," and the number of participants at the re:Invent annual conference "more than doubled." The spokesperson also said the notion that Amazon has moved away from its goal of saving customers money is "false." The company always starts with "the outcomes our customers are trying to achieve and works backwards from there." Garman, Amazon's cloud boss, hinted at some of these issues during an internal fireside chat held in June, according to a recording obtained by BI. He said there are sales opportunities for AWS in "every single conversation" with a customer, but AWS has to ensure those customers get real value out of their spending. "Too often we go talk to customers to tell them what we've built, which is not the same thing as talking to customers," Garman said. "Just because you have a hammer doesn't mean the problem the customer has is the nail." AWS's spokesperson said the company is "customer-obsessed" and always tries to consider decisions "from our customers' perspectives, like their ROI." Some of AWS's competitors don't take that approach, and it's a "notable contrast," the spokesperson added, pointing to this BI story about a Microsoft customer complaining about subpar AI features. Amazon is also doling out bonuses and other forms of potentially higher pay for AI sales success. AWS recently announced that salespeople will receive a $1,000 performance bonus for the first 25 Amazon Q licenses they sell and retain for 3 consecutive months with a given customer, according to an internal memo seen by BI. The maximum payout is $20,000 per customer. For Bedrock, Amazon pays salespeople a bonus of $5,000 for small customers and $10,000 for bigger customers when they "achieve 3 consecutive months of specified Bedrock incremental usage in 2024," the memo explained. Some AWS teams are discussing higher pay for AI specialists. Sales architects, for example, in AI-related roles across fields including security and networking could get a higher salary than generalists, one of the people said. AWS's spokesperson told BI that every major tech company provides similar sales incentives. Amazon continually evaluates compensation against the market, the spokesperson added. Inside AWS, there's a general concern that Amazon was caught off guard by the sudden emergence of generative AI and is playing catch-up to its rivals, most notably Microsoft, according to the people who spoke with BI. Some Amazon employees are worried that Q is losing some customers to Microsoft's Copilot because of a lack of certain AI features, BI previously reported. Microsoft has an advantage because of its wide range of popular business applications, including the 365 productivity suite. That makes it potentially easier for Microsoft to show customers how AI can improve their productivity, some of the Amazon employees told BI. AWS, meanwhile, has struggled to build a strong application business, despite years of trying. AWS's spokesperson challenged that by noting that AWS has several successful software applications for companies, including Amazon Connect, Bedrock, and SageMaker. The spokesperson also said Amazon Q launched in April and is already seeing robust growth. It's "no secret that generative AI is an extremely competitive space," the spokesperson added. "However, AWS is the leader in cloud and customer adoption of our AI innovation is fueling much of our continued growth. AWS has more generative AI services than any other cloud provider, which is why our AI services alone have a multibillion-dollar run rate." A major AWS reorganization earlier this year hasn't helped the AI sales effort, according to some of the people who spoke with BI. The big change switched AWS to more of an industry focus rather than a regional one. That caused confusion inside the company, and some large customers lost their point of contact, the people explained. AWS is still figuring out how to run as a more cohesive group, resulting in a slower sales cycle, they added. AWS's spokesperson said it's "inaccurate" to say its sales process has slowed, adding that year-over-year revenue growth accelerated again in the most recent quarter, and the business is now on pace to surpass $100 billion in sales this year. In his June fireside chat, Garman stressed the importance of speed and urged employees to "go faster." "Speed really matters," Garman said. "And it doesn't necessarily mean work more hours. It means how do we make decisions faster?"

The race in Big Tech to sell customers on AI products is heating up

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Meanwhile, in today's newsletter, we're looking at how AWS is ramping up its sales team to pitch customers on AI. When it comes to the AI revolution, building is only half the battle. After drawing scrutiny from investors about their massive investments in generative AI, tech companies are prioritizing getting returns on their big bets. At Amazon Web Services, that's meant a new internal sales campaign focused on its AI offerings, writes Business Insider's Eugene Kim. The three-pronged strategy, dubbed "Find One, Launch One, Ramp One," is about selling, installing, and generating revenue for Amazon's AI assistant, Q, and AI platform, Bedrock. A key piece of the plan is obviously AWS' salespeople, who are being incentivized with performance bonuses tied to Q and Bedrock and even a pizza party at an executive's home for top performers. (I'd probably just opt for the cash.) But it's not just salespeople getting in on the action. Staffers meant to implement tools with customers or craft the right cloud service for a client are now being encouraged to get more involved in the sales process. An AWS spokesperson told Eugene the company is merely responding to their customers' needs, and that the lines between salespeople and non-salespeople are still clear. AWS' pressure to ramp up AI sales isn't just focused on ROI. While it's long been a leader in the public cloud space, Amazon hasn't held the same dominance in the AI race. In particular, it's faced stiff competition from rival Microsoft, which benefited from its early bet on OpenAI. As a result, AWS has become more aggressive with its AI strategy, spreading doubts about its competitors to customers. But apart from all the fighting over customers and the push to create cutting-edge tools, a bigger question remains: Does anyone even want this stuff? It's still early days, but Microsoft, Amazon, and Google have all previously gotten some not-so-great feedback on their tools. And while these companies can't afford not to pitch their customers on AI tech, they also risk turning them off to the idea by selling them products that might not live up to expectations. I don't mean to sound naive. I am well aware this is a business that needs to make money. And sometimes not doing something can be just as risky as rushing into something. But it's a fine line to balance for tech companies banking on AI being the industry's next gold mine. The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.