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Packages move along a conveyor at an Amazon fulfillment center on Cyber Monday in Robbinsville, New Jersey, U.S., on Monday, Nov. 29, 2021.

Michael Nagle | Bloomberg | Getty Images

Chad Rubin was looking for a way to spice up his Amazon listing for a vacuum hose. He was struggling to come up with a catchy title that would make shoppers want to click on his hose instead of the countless others in Amazon’s vast marketplace.

For assistance, Rubin turned to ChatGPT, the artificial intelligence chatbot that’s gone viral since its launch late last year. He soon began to experiment with the tool for completing tasks such as generating copy on his product page. Rubin asked ChatGPT to “generate 5 insanely clever and catchy headlines” for an infographic promoting his vacuum cleaner hose.

“Dirt destroying air flow,” he said, reading off one of ChatGPT’s responses. “I would have never in a million years thought of that for a vacuum hose.”

As ChatGPT rapidly finds its way into use by lawyers, clinicians, professors and their students, it’s also showing its utility in the business world, notably for Amazon sellers seeking the tiniest competitive advantage as they try to bolster sales. Third-party merchants who have embraced ChatGPT say it can make the job of selling on Amazon’s marketplace easier and more lucrative.

A stream of YouTube videos, articles and LinkedIn posts have appeared in recent months touting the benefits of ChatGPT for Amazon sellers. E-commerce software providers such as JungleScout have also jumped on the trend by integrating ChatGPT into their services.

“This is one of those technologies that is going to fundamentally change everything we do in our lives,” said JungleScout technology chief Stephen Curial, who previously spent a decade at Amazon in software development. “It’s that powerful.”

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Curial said it won’t be long before generative AI tools such as ChatGPT become ordinary productivity aides, similar to calculators or spellcheck, helping busy businesspeople minimize daily grunt work.

ChatGPT has taken the technology industry by storm since it was introduced to the public in November by OpenAI, a Microsoft-backed startup that’s reportedly held talks with investors to sell shares at a $29 billion valuation.

Millions of people are using the free chatbot to do things such as write fiction, generate computer code and edit resumes. Microsoft has incorporated the technology into its Bing search engine, while Google introduced rival chatbot Bard last month.

Investors are pouring into the market with massive checks even as the broader tech startup market continues to suffer from the 2022 downturn. Last week, a 22-person pre-revenue startup called Character.AI, which was founded by two former Google employees, raised $150 million at a $1 billion valuation in a round led by Andreessen Horowitz.

Hamza Amor, an Amazon seller and founder of e-commerce consulting firm Fussy Penguins, has posted TikTok videos showing how ChatGPT can help merchants discover their next hit product.

Amor started experimenting with ChatGPT in December, asking it questions such as “Tell me more about you” and “What is the meaning of life?” He then asked it to write small passages, such as a children’s story, and was impressed by the results.

ChatGPT helped him improve his products after he asked the chatbot to summarize what users like and dislike about an item based on a set of reviews. For an under-desk footrest, it suggested he use different packaging and more durable materials, or consider offering multiple sizes and the ability to adjust the height of the footrest.

‘It does it in seconds’

The software also assisted with the writing of a few listings, a process that normally requires hours of writing and editing.

“It does it with the tone you suggest, and it does it in seconds,” Amor said. “That’s the part that was mind-blowing.”

ChatGPT’s handiwork has already delivered results for some users. Rubin said the conversion rate, or the percentage of clicks on an ad that result in sales, went up for several of his vacuum filters, coffee filters and air filters after he used ChatGPT for help with listings. For one product, the conversion rate increased from an average of 26% to 46% over an eight-week period, he said.

Rubin sees the opportunity to further capitalize on the trend by giving other sellers a streamlined way to use it. That’s important because third-party sellers are often managing dozens, if not hundreds, of listings on Amazon at the same time and are competing with many new sellers every day.

In 2021, Rubin started a pricing software company called Profasee, which has used AI in some of its features. Rubin said he plans to incorporate ChatGPT into a new tool that will help sellers quickly fine-tune their product listings.

But despite the hype, there’s good reason for skepticism when it comes to ChatGPT’s effectiveness. The nascent technology has shown that it’s prone to making mistakes and, in some cases, just making stuff up. ChatGPT learns to write by analyzing large volumes of information from the internet, and it can get things wrong, a phenomenon that AI experts call “hallucination.”

Aidan Duffy, a seller who also runs a consulting firm, turned to ChatGPT to help improve the listing for a sauna backrest, one of his newer products. Not only did the chatbot assist with writing bullet points on the listing, it also suggested he create an adjustable backrest for taller or shorter users, which he said he considered having manufactured.

Still, Duffy said he has some concerns about the technology’s accuracy. He recently used it for advice on the best way to import products from China, where his items are manufactured.

“It came back with a readable answer, but I see it as a baseline,” Duffy said. “It won’t do your job for you.”

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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