Amazon’s AI Plan: Will it Deliver?

Amazon Turns to Artificial Intelligence to Enhance Product Deliveries 

Amazon sees artificial intelligence as the technology that will help enhance its delivery business. The e-commerce giant has started using the technology to strengthen its logistics operations as it looks to minimize the distance between its products and customers.

AI in Deliveries

The revolutionary technology is to be used in transportation to help in mapping and planning delivery routes. The technology is to take into account variables like weather and traffic to help outline the ideal route that ensures goods are delivered in the least amount of time to enhance the same-day and next-day delivery.

Amazon is also leveraging artificial intelligence to enhance where to store its inventory. The e-commerce giant has been shipping items to customers from other countries for the longest time. It plans to do away with the regionalization model by using AI to enhance inventory storage. The company has already made significant progress on this front, with more than 74% of products delivered from fulfilment centers within the customer’s region.

Artificial Intelligence is the only technology capable of analyzing troves of data and patterns to predict which products will be in demand in different markets. Proper inventory placement should allow the company to cut back on delivery costs while enhancing the time it takes for products to reach the final destination.

In addition to enhancing logistics, artificial intelligence is to be used to help customers while searching for products on the platform. The technology is to help them find their rights as quickly as possible. The integration follows similar moves by Microsoft, which have already integrated AI-powered chatbot ChatGPT into its search engine Binge to enhance people’s search operations. Artificial intelligence technology should help Amazon enhance its data as the next delivery service as part of the Prime subscription service.

AI Effects on Jobs

The increased use of advanced technologies, while a good thing in enhancing supply and logistics, it also threatens to disrupt the labor market. Given the efficiencies they offer, more jobs that humans were initially doing are increasingly being allocated to AI-powered machines. A report by Goldman Sachs has already indicated that automation due to artificial intelligence could affect more than 300 million jobs in future.

Tech giants have continuously downplayed the effects that automation could pose, insisting they will play a collaborative role in helping support humans in the workplace. But, according to Amazon’s vice president of customer fulfilment and global op services, Stefan Pedego, automation will only cause a transformation in the type of jobs that humans do.

Consequently, he expects automation to only change job specifications rather than eliminate job positions. The tech giant is already using the technology in its fulfilment centers on repetitive tasks such as the lifting of heavy packages.

The Amazon executive expects humans to continue doing jobs that require cognitive abilities. Nothing could be further from the truth as tech giants have continued to downsize, laying off thousands of people amid the race to trim operational expenditures. In addition, the likes of Amazon, Facebook and Twitter have all laid off thousands of staff with the automation of many operations amid increased AI-powered chatbot use.

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