Amazon is exploring this direction using artificial intelligence to speed up delivery!

Amazon using AI to speed up delivery!

BusinessDialogue has learned from foreign media reports that Stefano Perego, Vice President of Amazon’s North American and European customer delivery and global operations services, recently stated that the company is focusing on using artificial intelligence to speed up delivery times and shorten the distance between products and customers.

Stefano Perego outlined how Amazon is using artificial intelligence in logistics. One area is transportation, such as mapping and planning routes while taking into account variables like weather. Another area is helping customers find the right products when searching on Amazon.

However, Amazon’s current focus is on using artificial intelligence to determine where to place inventory. Stefano Perego said, “I think one key area where we reduce service costs is inventory placement, by placing products in a way that reduces distance and meets customer demand, thus improving delivery speed.”

He further emphasized that Amazon has always been focused on what’s called “regionalization” efforts, delivering products to customers from warehouses closest to them rather than from other, more distant parts of the country.

But doing so requires technology that can analyze data and patterns to predict which products will be in demand and where. This is where artificial intelligence comes in. If products are closer to customers, Amazon will be able to offer same-day or next-day delivery, much like its Prime subscription service.

Stefano Perego said that if the artificial intelligence business progresses smoothly, more than 76% of the products ordered by customers in the United States will come from delivery centers in their own regions.

Amazon invests in robot technology

Amazon also uses robot technology in its delivery centers to perform repetitive tasks such as moving heavy packages. The company says that 75% of Amazon customer orders are currently processed by robots.

Earlier this year, a report from Goldman Sachs pointed out that there may be a “major shortage” in the global labor market, with automation leading to 300 million people facing unemployment.

Stefano Perego referred to automated equipment as “collaborative robots,” emphasizing how Amazon views the collaboration between humans and technology.

He said that as automation and artificial intelligence become more widespread, Amazon will make appropriate adjustments rather than eliminating the jobs that workers currently perform.

“Ultimately, the types of jobs that employees engage in at distribution centers will increasingly lean towards high-judgment work. Meanwhile, heavy labor and repetitive work will be done by robots. This is a transformation, not a replacement,” Stefano Perego added.

Editor: Nicole/BusinessDialogue

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