In a bid to enhance its logistics and improve delivery speeds, Amazon is reportedly leveraging the power of artificial intelligence (AI). This strategic move is expected to revolutionize transportation, product search, and inventory management.
The e-commerce giant is placing utmost importance on incorporating AI technology to expedite the delivery process. By minimizing the distance between products and customers, Amazon aims to achieve remarkable improvements in delivery speed.
Stefano Perego, Amazon’s Vice President of Customer Fulfillment and Global Operations Services for North America and Europe, disclosed in a recent CNBC interview that artificial intelligence plays a vital role across various aspects of the company’s operations.
The utilization of AI in transportation is becoming increasingly prevalent. This involves leveraging AI capabilities for tasks like mapping and route planning, taking into account factors such as weather conditions. Additionally, Amazon employs AI technology to assist customers in efficiently locating their desired products during the search process.
Optimizing inventory management is another area where Amazon is currently prioritizing AI technology. According to Perego, effective inventory placement is crucial in reducing service costs. He emphasized the complexity of determining the optimal location for each unit of inventory.
The primary objective is to bring customers closer and expedite the delivery process. To achieve this, Amazon is focusing on its “regionalization” program, which emphasizes delivering products to customers from nearby warehouses instead of distant locations. Cutting-edge technology is employed to analyze data and patterns, enabling the anticipation of product demand and identification of the most advantageous inventory placement.
AI serves as a pivotal component in realizing this objective. By strategically positioning products in closer proximity to customers, Amazon can offer same-day or next-day deliveries akin to its Prime subscription service.
According to Perego, Amazon’s efforts have yielded impressive results, with over 74% of customer orders in the United States being fulfilled from distribution centers in close proximity.
On April 13, Amazon made a notable announcement about the launch of Bedrock, an advanced AI model. This model empowers users of Amazon Web Services to create generative AI by building upon foundational models.