AI meets YQ: We asked Amazon Nova to analyze — and grade — Andy Jassy’s annual letters

In his 2024 Letter to Shareholders, released Thursday morning, Amazon CEO Andy Jassy introduces a new concept: Amazon’s “Why Culture,” or “YQ,” as he calls it.

That’s his phrase for natural curiosity — a willingness to challenge the status quo by asking why things are the way they are, and why they can’t be different.

One place this is playing out: Jassy’s campaign to reduce bureaucracy inside the company. He says he has received nearly 1,000 emails from employees since September, when he asked them to send messages to his “Bureaucracy Mailbox” with examples of excessive process and rules inside the company.

In response, he writes, Amazon has made more than 375 changes to cut inefficiencies — especially those slowing down decision-making and innovation.

Jassy also writes about progress on AI inside Amazon, saying that there are now more than 1,000 generative AI applications being developed inside the company, building on its work in AI foundation models and platforms.

“Generative AI is going to reinvent virtually every customer experience we know, and enable altogether new ones about which we’ve only fantasized,” Jassy writes, answering the question of why AI is so important.

All of this gave me an idea for my own “why” questions:

• Why not ask Amazon’s homegrown AI model, Amazon Nova, to compare and contrast this year’s annual letter with past installments?
• Why not get Nova to assign letter grades to Jassy’s annual letters?
• Why not include Jeff Bezos’ final letter to shareholders in the mix?

Here’s how Amazon’s Nova Pro model responded to my questions.

The annual letters to shareholders from 2021 to 2024 under Andy Jassy’s leadership provide insights into Amazon’s strategic responses to various challenges and its evolving approach to innovation and customer experience.

In 2021, Amazon grappled with the impacts of the pandemic and geopolitical events, which strained its fulfillment network and increased costs. The company’s response was characterized by rapid expansion of its network and investment in new technologies like AWS Graviton2 chips and Kuiper satellites. The letter highlighted the importance of iterative innovation and the role of AWS in helping businesses adapt to the changing landscape.

By 2022, Amazon had stabilized and shown significant growth in its consumer and AWS businesses. The company continued to invest in its fulfillment capabilities and introduced new services like Amazon Bedrock and Amazon Q. The letter emphasized the need for long-term thinking and investment in customer experiences, even in the face of macroeconomic uncertainties.

In 2023, Amazon focused on cost optimization and AWS expansion, while also addressing the challenges of a complex and dynamic market. The company introduced new AI chips and services, and made strategic investments in Prime Video and Kuiper. The letter underscored the importance of a customer-centric approach and the role of AI in driving future growth. The concept of “primitives,” foundational building blocks that enable rapid innovation, was discussed, reflecting a strategic approach to technology development.

In 2024, Amazon’s strategic investments in AI and generative AI services began to yield results, with significant revenue growth across all segments. The company launched new AI silicon and expanded its generative AI offerings. The letter highlighted the transformative potential of AI and the company’s commitment to making customers’ lives better and easier. The “Why Culture,” which encourages constant questioning and innovation, was prominently featured as a key driver of its success.

The evolution of themes across the letters suggests a shift from immediate crisis management in 2021 to a more strategic focus on long-term growth and innovation in 2024.

Amazon is positioning itself for a future where AI and machine learning are integral to its business model. The company’s investments in AI chips, generative AI services, and its fulfillment network suggest a strategic pivot towards technologies that can deliver more personalized and efficient customer experiences.

The letters also reveal a company that is increasingly aware of its own scale and the need to manage it effectively. The focus on cost optimization and the introduction of new services indicate a balance between maintaining operational efficiency and pursuing growth opportunities. However, the company’s size and the associated bureaucracy present ongoing challenges, as evidenced by its efforts to streamline processes and reduce costs.

Overall, the letters paint a picture of a company that is not only responding to immediate challenges but is also actively shaping its future through strategic investments and a culture that encourages continuous innovation and questioning. The company’s approach to technology development, suggests a long-term strategy for sustainable growth and innovation, even as it grapples with the complexities of managing a large-scale operation.

I’ve read all the letters, including the one today, and that seems on the mark to me.

So let’s get to the grades. Nova seemed a little hesitant to weigh in on this question — maybe it’s aware of who’s paying for its GPUs — but in the spirit of constructive feedback, it agreed to play along.

Assigning letter grades to annual letters to shareholders is a subjective exercise, but here’s an assessment based on the content and strategic focus of each year:

2021: C

The letter reflects a company grappling with immediate challenges posed by the pandemic and geopolitical events. While Amazon demonstrated resilience by expanding its network and investing in new technologies, the focus was more on crisis management than strategic growth. The letter lacked a clear vision for the future beyond addressing current issues.

2022: B

The 2022 letter showed a stronger strategic focus, with significant growth in consumer and AWS businesses. The company continued to invest in fulfillment capabilities and introduced new services. However, the letter still emphasized the need for long-term thinking and investment in customer experiences, indicating a transition phase.

2023: A-

The 2023 letter presented a more mature strategic approach, with a focus on cost optimization, AWS expansion, and the introduction of new AI chips and services. The discussion of “primitives” indicated a deeper commitment to building foundational technologies for long-term innovation. The letter also addressed the challenges of managing a large-scale operation.

2024: A

The 2024 letter showcased a company that had successfully navigated through crises and was now reaping the benefits of its strategic investments in AI and generative AI services. The letter highlighted significant revenue growth and the transformative potential of AI. The “Why Culture” was prominently featured, indicating a strong commitment to making customers’ lives better and easier. The letter demonstrated a clear vision for the future and a balanced approach to managing its size and bureaucracy.

These grades are based on the clarity of strategic vision, the effectiveness of crisis management, the depth of innovation, and the company’s ability to balance growth with operational efficiency.

Here’s the comparison between Jassy’s letters and Bezos’ 2020 letter, his final one.

Tone and Style:

• Jeff Bezos: Bezos’ final letter is characterized by a reflective and somewhat nostalgic tone. He reminisces about the early days of Amazon, the exponential growth in value, and the impact on shareholders. The letter is personal, with anecdotes about his family and a focus on the long-term vision of Amazon.
• Andy Jassy: Jassy’s letters, particularly the 2024 letter, adopt a more direct and pragmatic tone. While he acknowledges the company’s history and success, his focus is on current and future strategic initiatives, particularly in AI and customer experience.

Strategic Focus:

• Jeff Bezos: Bezos emphasizes Amazon’s mission to be Earth’s Most Customer-Centric Company and introduces new initiatives like Earth’s Best Employer and Earth’s Safest Place to Work. He also discusses the Climate Pledge and the importance of differentiation and originality.
• Andy Jassy: Jassy’s letters show a shift towards a more operational and technology-driven focus. The 2024 letter highlights the transformative potential of AI and generative AI services, while the 2023 letter discusses “primitives” as foundational building blocks for innovation.

Innovation and Technology:

• Jeff Bezos: Bezos talks about the importance of innovation in a broad sense, including new business models and sustainability initiatives. He mentions the Climate Pledge and the company’s efforts to become a zero-emission platform by 2040.
• Andy Jassy: Jassy’s letters place a stronger emphasis on specific technological innovations, particularly in AI and machine learning. The 2024 letter discusses the launch of new AI silicon and generative AI services, while the 2023 letter introduces the concept of “primitives.”

Customer Experience:

• Jeff Bezos: Bezos consistently emphasizes the importance of customer experience, but his approach is more holistic, considering the broader impact of Amazon on society and the environment.
• Andy Jassy: Jassy’s letters focus more on the technological aspects of improving customer experience, particularly through AI and machine learning. The “Why Culture” in the 2024 letter reflects a deeper commitment to questioning and innovation in this area.

Employee Focus:

• Jeff Bezos: Bezos discusses the importance of being Earth’s Best Employer and Earth’s Safest Place to Work. He highlights initiatives like WorkingWell and the increase in minimum wage.
• Andy Jassy: Jassy’s letters, while acknowledging the importance of employees, place a greater emphasis on the technological and operational aspects of the business. The focus is more on how technology can drive better customer experiences and operational efficiency.

Conclusion:

• Bezos’ final letter provides a broad and visionary perspective on Amazon’s future, emphasizing the company’s impact on society and the environment.
• Jassy’s letters, particularly from 2023 onwards, show a more focused and operational approach to innovation and customer experience, with a clear emphasis on AI and machine learning.
• Both leaders demonstrate a commitment to Amazon’s core mission, but their approaches reflect the different challenges and opportunities they faced during their tenures.

This isn’t entirely fair. As Jassy wrote in his first annual letter, Bezos as Amazon’s founder set a high bar for writing annual letters to shareholders. They were so widely read and referenced that they ended up being compiled into a book.

That said, the comparison does illuminate the differences in their leadership styles and the evolution of the company’s focus under Jassy as CEO.

I could (and did) keep asking Nova questions about the 2024 letter, but that’s probably enough “whys” for this post.

But just to turn the tables on Amazon’s AI model, I asked for an assessment of Nova’s analysis from OpenAI’s ChatGPT 4o, which for the moment is the gold standard of AI chatbots in my own day-to-day work.

I thought this take from ChatGPT was on the mark: “It’s missing a little spark. If this is Nova’s response, it could use just a bit of style — a confident, observant tone that implies, ‘I’ve read every letter. I’ve seen the throughline.’ “

ChatGPT also put together this great chart. (Click to enlarge.)

Read Andy Jassy’s full 2024 letter to shareholders here.