According to reports, Amazon plans to use AI to reduce the distance between products and customers. This technology will have a positive impact on transportation, product search, and inventory management.
- Amazon is focusing on using AI to make deliveries faster by bringing products closer to customers.
During an interview with CNBC on May 15, Stefano Perego, Amazon’s Vice President of Customer Fulfillment and Global Operations Services for North America and Europe, mentioned that artificial intelligence (AI) is involved in different parts of Amazon’s operations. AI helps with transportation by helping with mapping, route planning, and taking into account factors like the weather. Furthermore, AI aids customers in finding the products they are looking for when searching on Amazon.
Amazon is currently giving high priority to using AI to improve its inventory management. Perego highlighted how important it is to place inventory strategically in order to reduce the costs associated with providing services.
Think about how challenging it can be to decide where to put each item in our inventory. We need to figure out the best spot that minimizes the distance to reach customers and makes deliveries faster.
Amazon is focusing on its “regionalization” initiative, which means delivering products to customers from nearby warehouses instead of far-away ones. But to make this happen, they need advanced technology to analyze data and patterns. This helps them predict what products will be in demand and decide where to place the inventory for the best results.
AI is very important in helping Amazon reach this goal. By placing products strategically closer to customers, Amazon can offer fast deliveries, like the ones you get with their Prime subscription service. Perego mentioned that their efforts have been successful, with more than 74% of customer orders in the United States being fulfilled from nearby distribution centers.
Amazon recently made an announcement on April 13 about a new AI model called Bedrock. This model is designed to help users of Amazon Web Services (AWS) create their own generative AI systems starting from basic foundation models.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
