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Amazon uses AI to enhance logistics and delivery speeds

According to reports, Amazon is set to utilize artificial intelligence (AI) technology to reduce the distance between products and customers. This move is expected to have a significant impact on transportation, product search, and inventory management.

Amazon is placing a high priority on the utilization of artificial intelligence (AI) technology to improve delivery speed. The company aims to achieve this by minimizing the distance between products and customers.

In an interview with CNBC on May 15th, Stefano Perego, Amazon’s Vice President of Customer Fulfillment and Global Operations Services for North America and Europe, revealed that the e-commerce giant utilizes artificial intelligence in multiple facets of its operations.

The utilization of artificial intelligence in transportation is becoming increasingly prevalent. This involves the implementation of AI for tasks such as mapping and route planning, while taking into account various factors such as weather conditions. In addition, Amazon utilizes AI technology to aid customers in locating their desired products during the search process.

Amazon is currently giving priority to artificial intelligence (AI) technology in order to optimize its inventory. According to Perego, inventory placement is a critical factor in reducing service costs. He highlighted the complexity of determining the optimal location for each unit of inventory.

The aim is to bring customers closer and speed up delivery, according to the speaker.
Amazon is focusing on its “regionalization” program, which prioritizes the delivery of products to customers from nearby warehouses rather than far-off locations. To achieve this objective, cutting-edge technology is necessary to scrutinize data and patterns, allowing for the anticipation of product demand and the identification of the most advantageous inventory placement.

Artificial intelligence (AI) is a vital component in the pursuit of this objective. Amazon has the ability to enable same-day or next-day deliveries, much like its Prime subscription service, by strategically positioning products in closer proximity to customers.

Perego reports that the company’s endeavors have yielded fruitful results, as more than 74% of customer orders in the United States are being satisfied from distribution centers in close proximity.

Amazon made an announcement on April 13 regarding the launch of Bedrock, an advanced artificial intelligence model. This model will enable users of Amazon Web Services to create generative AI by building upon foundation models.


About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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