Stefano Perego, vice president of customer fulfillment at Amazon stated their increased focus on AI for speeding up deliveries. By reducing the distance between its items and customers, Amazon is concentrating on leveraging artificial intelligence to accelerate deliveries. He also describes how will the be using to tech for logistics in America and Europe.
How will Amazon make use of AI?
According to Perego, one instance is when shoppers use Amazon’s product search function to find the products they need. With the help of AI, they can use it to make efficient decisions for inventory management. He believes that inventory placement is a crucial field in which they can focus to minimize cost to service. Another aspect is transportation, such as mapping and route planning while taking into consideration external factors like the weather.
With an inventory so enormous in size, optimization can make a huge difference. Amazon can use databases to place their products in such a manner that it becomes easier to fetch them. Inventory management is a difficult process, even for Amazon. They believe its complexity be can be reduced with the use of AI.
Amazon is trying to regionalise there shipping as much as they can. It means that a customer gets their product from the closest spot instead of another country. They will be incorporating a machine learning program which can analyze data and patterns. This will make deliveries significantly faster. Customers can expect their packages to get delivers to them on the same day more frequently. In USA, regionalization of centers has already increased the no. of buyers getting their products on the same day 74%.
Amazon already uses robots for nearly 75% of their heavy lifting jobs. While some people raise concerns over AI taking over their jobs, Prego says it will ‘transform’ their jobs not substitute them. nearly all of the heavy work will be done by AI while more authoritative work will still be done by humans.
