Amazon Web Services (AWS) is making a significant bet on agentic artificial intelligence (AI), with CEO Matt Garman calling it the company’s “next multibillion business.” AWS has formed a dedicated group to accelerate innovation in this space, to be led by AWS executive Swami Sivasubramanian, who will report directly to Garman.

In an internal email reported by Reuters on March 4, Garman emphasized the transformative potential of AI agents. “We have the opportunity to help our customers innovate even faster and unlock more possibilities, and I firmly believe that AI agents are core to this next wave of innovation,” he wrote.

AI agents, designed to perform complex tasks independently, are rapidly gaining traction across industries. Unlike traditional AI models that require continuous user input, agentic AI can handle multiple steps in a process, working autonomously in the background.

Garman has highlighted the agentic capabilities of Alexa+, the latest version of Amazon’s voice assistant. In a recent LinkedIn post, he explained that Alexa+ can manage tasks even when users are not actively engaging, automating complex interactions with websites and services. This functionality, powered by AWS’s cloud infrastructure, underscores the company’s ambition to lead in the AI agent space.

Sivasubramanian also weighed in on Alexa+’s capabilities, stating that the assistant instantly matches user requests with the most suitable AI model and seamlessly integrates with services like email, calendars, and apps. “For customers, this means having an AI assistant that independently completes tasks on your behalf,” he wrote. Unlike previous iterations of AI assistants, Alexa+ eliminates the need for manual interaction, streamlining tasks without requiring users to hold a device or navigate screens.

AWS’s push into agentic AI comes at a time when the broader AI industry is witnessing rapid advancements. OpenAI CEO Sam Altman recently predicted that AI models could soon outperform human software engineers, with the company’s most advanced reasoning model expected to top competitive programming contests by the end of the year.

Meanwhile, Nvidia CEO Jensen Huang has emphasized that AI is still in the early stages of a transformation that will embed it into every industry. Speaking to Wall Street analysts on Feb. 26, Huang noted that the first wave of AI adoption was driven by generative AI for consumers, while the second wave—powered by AI agents—is expected to revolutionize business operations.

With AWS already a dominant player in cloud computing, its expansion into agentic AI could further strengthen its position as a leader in enterprise AI solutions. While Amazon has not officially commented on the new initiative, the formation of a dedicated team and the direct involvement of top executives signal the company’s commitment to staying ahead in the AI race.

As businesses increasingly look for AI-driven automation, AWS’s investment in agentic AI could reshape how enterprises leverage technology, making AI agents an integral part of future digital workflows. If successful, this move could not only enhance Amazon’s AI capabilities but also redefine the role of AI in business operations worldwide.