Amazon is using AI to speed up the delivery of goods

In a bid to enhance the efficiency of its delivery operations, Amazon has embraced the power of artificial intelligence (AI). By leveraging AI capabilities, the e-commerce giant aims to expedite the transportation of customers’ goods by reducing the distance between them.

According to Stefano Perego, Vice President of Customer Fulfillment and Global Ops Services for Europe and North America at Amazon, the company is employing AI in various aspects of its logistics operations, with a primary focus on transportation. Also, the technology has been proven useful in planning and mapping routes and considering the weather.

The main focus is on using AI to place inventory in the right location. Perego said; “I think one area that we consider key to lower cost to serve is inventory placement.” Amazon has been paying attention to how to deliver goods to customers from the closest warehouse to the customers. This is in contrast to delivering from a different part of the country. 

This requires high technology that can analyze data and preferences to predict the goods that will be in demand and where. Fortunately, this is exactly what AI will do. Just like Amazon’s Prime subscription service, Amazon will also be able to deliver goods to customers within a day if the product is closer to the customer.

According to Perego, they are already making progress as more than 74% of the goods their customers in the United States order are from fulfillment centers in their region.

Focus on Robotics

Amazon is employing robotics in its fulfillment centers to carry out duplicative tasks like lifting heavy-duty containers. The company made a statement that robots now handle about 75% of their customer’s orders.

There is a controversy on how generative AI like ChatGPT will disrupt the labor market. Earlier this year, a Goldman Sachs report indicated that there could be a “major disruption to the world market, with AI projected to affect about 300 million jobs.

Pegero emphasized how Amazon envisions the collaboration between humans and technology. In his words, automation is “Collaborative Robotics”. He said; “I think that what is happening is a transformation of the type of jobs. ” He also believes that AI and robotics can only transform the jobs that workers perform but not eliminate them.

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