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Home » AI in Distribution » Amazon–Perplexity Showdown Signals a Turning Point for Distributors

Date

  • Published on: November 6, 2025

Author

  • Picture of Mark Brohan Mark Brohan

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AI in Distribution

Amazon–Perplexity Showdown Signals a Turning Point for Distributors

For wholesale distributors, the battle that erupted this week between Amazon and AI startup Perplexity isn’t just a Silicon Valley skirmish — it’s an early test of who controls the next generation of digital commerce. The outcome could determine whether distributors keep their direct line to customers or find that connection filtered — or even replaced — by artificial intelligence.

As AI-driven “shopping agents” begin to act on behalf of users, automatically sourcing, comparing, and purchasing products, distributors face a future where many transactions no longer start with a human search or a sales call. Instead, they’ll originate from autonomous systems negotiating and buying in real time. The legal and technical lines now being drawn between Amazon and Perplexity over how those agents operate may set the precedent for how distributors, suppliers, and marketplaces engage with AI intermediaries across B2B and B2C channels.

Dispute: Transparency and Control in the Agentic Web

On Nov. 4, Amazon sent a cease-and-desist letter to Perplexity AI, alleging that its “Comet” agentic browser and shopping assistant violated Amazon’s conditions of use by disguising itself as a human user while placing or managing orders through the Amazon Store. The retailer said Perplexity’s software “purposely configured its … code to not identify the Comet AI agent’s activities,” calling the behavior an “unauthorized intrusion” under the Computer Fraud and Abuse Act.

“Perplexity’s misconduct must end,” Amazon’s counsel wrote, adding, “Perplexity is not allowed to go where it has been expressly told it cannot; that Perplexity’s trespass involves code rather than a lockpick makes it no less unlawful.”

Amazon’s complaint goes beyond unauthorized access — it frames the issue as one of transparency and customer trust. The company argues that hidden AI agents could degrade product recommendations, shipping optimization, and the curated experience Amazon says it spends billions to maintain. “AI agents that make purchases on behalf of customers must operate transparently,” Amazon said in its letter, “because transparency protects customers’ data and enables dialogue between service providers and AI developers.”

Perplexity Pushes Back: ‘Bullying Is Not Innovation’

Perplexity publicly rejected Amazon’s accusations, publishing a response titled “Bullying Is Not Innovation.” The startup framed Amazon’s move as an attempt to preserve its dominance over online commerce and restrict how consumers use their own AI assistants.

“This week, Perplexity received an aggressive legal threat from Amazon, demanding we prohibit Comet users from using their AI assistants on Amazon,” the company wrote. “This is Amazon’s first legal salvo against an AI company, and it is a threat to all internet users.”

Perplexity’s CEO, Aravind Srinivas, maintains that Comet acts only as a user-authorized agent, not a separate entity requiring disclosure. “Your AI assistant must be indistinguishable from you,” the company said. “When Comet Assistant visits a website, it does so with your credentials, your permissions, and your rights.”

That position draws a clear line in the sand: Amazon sees Comet as a third-party bot intruding into its systems, while Perplexity insists it’s simply the next evolution of user software — the digital equivalent of a personal employee executing tasks on behalf of a customer.

Why It Matters for Wholesale Distributors

While the dispute centers on consumer retail, the implications for wholesale distribution are profound. Every major distributor — from Grainger to Global Industrial, from Sysco to Wesco — is digitizing its sales channels and exploring AI-powered automation. The Amazon–Perplexity clash exposes the next frontier: AI intermediaries deciding where orders go.

  • Ownership of the Customer Relationship
    For decades, distributors have invested heavily in maintaining direct relationships through inside sales teams, ecommerce portals, and data-driven personalization. But as AI agents begin to represent customers, those traditional touchpoints could disappear. The “customer” might soon be a machine acting on behalf of an end user. The question becomes: who owns the relationship — the distributor, the marketplace, or the AI agent provider?
  • Machine-Readable Data as a New Competitive Currency
    If distributors want AI agents to select their products, their catalogs must be structured for machine readability: clear specifications, availability, pricing, and metadata that agents can parse and rank. As DataDome CEO Benjamin Fabre observed in a statement to media, “Brands need to think not just about how they appear in search or on social, but how they’re represented — or excluded — by AI agents making decisions for consumers.”

That insight applies squarely to B2B. Distributors that fail to expose structured data risk being invisible to the agentic layer of commerce.

  • Platform Dependence and Rule-Setting Power
    Amazon’s argument underscores how platforms intend to set the rules for agentic access. Any distributor relying on marketplace sales, digital procurement hubs, or partner APIs may soon face similar restrictions on AI-mediated ordering. As these systems evolve, platform terms of service will increasingly determine which agents can interact, under what conditions, and with what data rights.
  • Fulfillment Speed and Real-Time Integration
    Agentic commerce thrives on immediacy. When an AI system orders parts or materials automatically, it expects instantaneous confirmation, transparent inventory, and frictionless invoicing. That puts pressure on distributors to modernize backend systems — integrating order management, pricing, and logistics APIs capable of machine-to-machine communication in real time.
  • Trust, Security, and Compliance
    Amazon’s letter raises another red flag for distributors: liability. If an AI agent acting on behalf of a buyer mishandles data, misorders products, or exploits a system, who is responsible? The rules for authentication, consent, and audit trails in AI-mediated transactions remain murky, especially in regulated industries such as healthcare, electrical, and construction supply.

The Bigger Picture: Agentic Commerce Comes of Age

The Amazon–Perplexity dispute is the clearest signal yet that agentic commerce — the use of autonomous AI systems to act on behalf of buyers and sellers — has reached an inflection point. It forces the industry to define boundaries between innovation and intrusion, between user rights and platform control.

Amazon, for its part, insists that agent transparency is necessary to protect both customers and marketplaces. “AI agents that offer to make purchases on behalf of customers must operate transparently,” the company said, “because transparency protects a service provider’s right to monitor AI agents and restrict conduct that degrades the customer shopping experience.”

Perplexity argues the opposite: that user-driven agents should not require platform approval. “The law is clear that large corporations have no right to stop you from owning wrenches,” its statement said. “Today, Amazon announced it does not believe in your right to hire labor — to have an assistant acting on your behalf.”

What Distributors Should Do Now

For distributors, this battle offers a preview of what’s coming — and a checklist for adaptation:

  • Audit data accessibility. Make sure your product catalog, pricing, and inventory data are machine-readable and accessible via secure APIs.
  • Model “agentic ordering.” Run scenarios where an AI system — not a human — places and tracks an order to assess system readiness.
  • Engage marketplaces early. Ask Amazon Business, Grainger.com, or other partners how they plan to handle AI-mediated orders.
  • Strengthening security and authentication. Prepare for automated agents logging in or transacting under delegated credentials.
  • Develop trust frameworks. Create transparent policies on how your systems interact with third-party agents to reassure both customers and regulators.

The Bottom Line

What’s playing out between Amazon and Perplexity is more than a legal fight — it’s the start of a power struggle over who owns the future interface of commerce. For distributors, the message is clear: AI agents are coming, and they will choose where to buy. Whether you’re visible, trusted, and integrated into that ecosystem will depend on how quickly you adapt your data, systems, and partnerships to an agent-driven world.

If history is any guide, the distributors that modernize first — and align themselves with transparent, agent-ready commerce models — will define the next era of digital distribution. Those that wait may find their customers’ “AI assistants” no longer knocking on their door.

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