Amazon is using generative AI to drive more same-day shipping using smarter robots and better routes | CNBC
Amazon has always been a leader in fast deliveries, and now they aim to make same-day shipping more common using cutting-edge generative AI. When Prime launched in 2005, two-day shipping seemed like a miracle, but by 2019, one-day shipping was the new normal for millions of items. The retail giant is now looking to use generative AI to make its delivery game even faster. Steve Armato, Amazon’s VP of transportation technology and services, says AI is used to optimize delivery routes, boost warehouse robots’ intelligence, and improve how new items are stocked. In some of the biggest U.S. cities, 60% of Prime orders are already delivered the same or the next day!
This isn’t just a simple tech upgrade. In 2020, Amazon began using models to predict demand and optimize its massive supply chain. What does that mean? Simply put, Amazon’s AI can help them know what you’re likely to buy before you even hit the “Buy Now” button, which means less travel distance and quicker deliveries. But the rise of AI isn’t without some challenges. There are growing concerns about how much energy AI consumes and how robots can take over human jobs in Amazon’s workforce.
Speaking of robots, Amazon’s warehouses are buzzing with them—literally. Since 2021, the number of robots has more than doubled to 750,000, all working together to move packages around more efficiently. These robots are becoming smarter daily thanks to generative AI, learning to avoid obstacles and take the quickest routes to complete their tasks. Amazon’s new robots, like Proteus and Digit, are even more autonomous, helping reduce the strain on human workers. But don’t worry—Amazon is investing $1.2 billion to upskill 300,000 employees so they can manage this new wave of automation.
Still, questions remain. Amazon is reducing its carbon footprint with AI-powered route predictions and more efficient warehouse systems, but the environmental cost of AI itself is a hot topic. As generative AI grows, its energy consumption might become a major hurdle in Amazon’s goal to go carbon-neutral by 2040. And while AI is powering the company’s future, the real payoff from these AI investments is still uncertain…………
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How might the increasing reliance on AI and automation in companies like Amazon impact the job market, consumer experience, and investor confidence in the long run?
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