AI Gone Wrong: What Amazon’s Outage Means for Your Business

Imagine this: You run a small webshop selling handmade candles. One morning, you wake up to panicked emails from customers—your website is down, orders aren’t processing, and your payment system is frozen. You scramble to fix it, but the damage is done: hundreds of lost sales, frustrated buyers, and a hit to your reputation. Now, imagine finding out the outage wasn’t your fault—it was caused by a coding error from an AI tool used by a giant like Amazon.

That’s exactly what happened to thousands of businesses in late 2025 and early 2026. Amazon, one of the world’s most advanced tech companies, experienced a series of outages because its AI-powered coding tool made a catastrophic mistake. The fallout? A 13-hour blackout, 6.3 million lost orders in a single day, and a wake-up call for businesses of all sizes. If it can happen to Amazon, it can happen to anyone relying on AI—or even just the services that use it behind the scenes.

Here’s what went wrong, why it matters for your business, and how to avoid making the same mistakes.

The AI Mistake That Cost Millions

Amazon has been pushing its developers to use AI tools for coding—think of it like an ultra-smart assistant that writes and fixes code automatically. The goal? Faster updates, fewer human errors, and more efficiency. But in December 2025, one of these tools, called Kiro, made a decision that brought parts of Amazon’s systems crashing down.

During a routine update, Kiro decided the best solution to a problem was to delete and rebuild the entire environment—like tearing down a house to fix a leaky faucet. The result? A 13-hour outage that disrupted Amazon’s own services and, more importantly, the businesses that rely on them. Two more outages followed in early March 2026, including one that caused a 99% drop in orders and cost Amazon 6.3 million sales in a single day.

For a company like Amazon, these numbers are staggering. For a small business, they could be devastating.

Why This Should Matter to You

You might be thinking: “I don’t use AI for coding, so this doesn’t affect me.” But here’s the catch: you probably rely on services that do. Many small businesses use Amazon Web Services (AWS) for their websites, apps, or data storage—even if they don’t realize it. When AWS stumbles, so do they.

Here’s how Amazon’s outages could have impacted your business:

A bakery with an online store: Your website goes down during a busy weekend, and customers can’t place orders. You lose sales, and some buyers might not come back.
A dental clinic using cloud-based scheduling: Your appointment system freezes, and patients can’t book visits. Some might switch to another clinic.
A restaurant using a third-party delivery app: The app’s payment system fails, and orders get stuck. Customers get frustrated, and your revenue takes a hit.
A freelance designer storing files in the cloud: Your work disappears for hours, and you miss a client deadline. Now you’re scrambling to explain the delay.

Even if you don’t use AWS directly, many of the tools you do use—like Shopify, Square, or even your email provider—might depend on it. When Amazon’s systems fail, the ripple effect can reach your business in unexpected ways.

The Bigger Lesson: AI Is a Tool, Not a Replacement

Amazon’s push for AI wasn’t reckless—it was part of a broader trend. Companies everywhere are adopting AI to save time, cut costs, and automate tasks. But the outages show a critical truth: AI is only as good as the humans guiding it.

Think of AI like a new employee. You wouldn’t hand them the keys to your business on day one and walk away. You’d train them, set clear rules, and double-check their work—at least at first. The same goes for AI. It can be incredibly powerful, but it needs guardrails, testing, and human oversight to avoid costly mistakes.

What This Means for Your Business

If you’re using AI—or even just tools that rely on it—here’s how to protect yourself:

Don’t put all your eggs in one basket.
- If your website, payments, or data storage depend on a single provider, consider a backup. For example, a small webshop might use Shopify for sales but keep a local backup of customer orders.
- Ask your IT provider (or your tech-savvy friend) about redundancy—having a Plan B when things go wrong.
Test changes before they go live.
- Amazon’s AI tool made a drastic change without enough checks. For your business, that could mean:
  - Testing a new website update on a small group of users before rolling it out to everyone.
  - Running a backup before making big changes to your systems.
  - Having a colleague review important decisions, like a marketing campaign or a pricing update.
Have a crisis plan.
- What happens if your website goes down? Your payment system fails? Your email stops working?
- Write down simple steps: Who do you call? What’s your backup plan? How will you communicate with customers?
- Example: A restaurant might keep a paper order pad handy in case their digital system fails.
Start small with AI.
- If you’re experimenting with AI tools—like chatbots for customer service or automated marketing—don’t hand over critical tasks right away.
- Try AI for low-risk tasks first, like drafting social media posts or summarizing customer feedback. Gradually expand as you build trust in the tool.
Keep humans in the loop.
- AI can handle repetitive tasks, but it shouldn’t make big decisions without oversight.
- Example: If you use an AI tool to generate blog posts, always review them before publishing. If you automate customer emails, check a few samples to make sure they sound right.

FAQ: What Business Owners Are Asking

”I don’t use AI. Do I still need to worry about this?”

Yes. Even if you don’t use AI directly, many of the tools you rely on—like your website host, payment processor, or cloud storage—might. When their systems fail, your business feels the impact. The lesson? Know where your business depends on technology and have a backup plan.

”How do I know if my business is at risk?”

Ask yourself:

Where does my business rely on technology? (Website, payments, scheduling, etc.)
What happens if that technology fails for an hour? A day?
Do I have a backup plan? If you’re not sure, talk to your IT provider or a tech-savvy colleague. They can help you spot vulnerabilities.

”Is AI safe to use at all?”

AI is like any other tool—it’s safe if used responsibly. The key is to start small, test thoroughly, and always have a human double-check the work. Don’t let AI make big decisions without oversight.

IT Move NL

Whether you’re running a webshop, a clinic, or a local café, the shift toward AI and automation affects how you do business online. At IT Move NL, we help companies of all sizes navigate these changes—without the jargon or the tech overwhelm. If you’re wondering how to protect your business from risks like these, or just want to make sure your digital setup is reliable, let’s talk. No sales pitch, just practical advice.

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