Amazon uses AI to solve the most difficult 'problem' in logistics

Stefano Perego, Vice President of Global Customer and Service for North America and Europe, shared how the company uses AI in its logistics processes.

Choosing where to locate a warehouse is an essential problem for online sales companies like Amazon.

New technology is being used to map and plan routes that take into account variables like weather, while another area is improving the consumer product search experience on Amazon to help them quickly find the right goods.

However, according to the leader of this technology company, Amazon's main focus is using AI to find the most reasonable warehouse location.

“The key area for us to save costs is where to locate our warehouses. It’s a complex decision, but if we can shorten the distance to our customers, it will speed up our delivery,” Perego said.

Accordingly, Amazon focuses its efforts on “regionalization” to ship goods to consumers from warehouses closest to them, rather than from another part of the country.

This job requires technology with the power to analyze data, as well as predictive models that predict which products will be in high demand and in which regions.

Today, 74% of the products customers order on Amazon are shipped from fulfillment centers in their area, which use robots to help with repetitive tasks.

The popularity of ChatGPT has raised concerns about the impact on the job market. A Goldman Sachs report earlier this year found that automation could “significantly disrupt” the global workforce, with as many as 300 million jobs at risk.

Meanwhile, Perego describes automation as “collaborative robots,” helping humans and machines work together. And as the technology becomes more widespread, AI and automation will change the nature of work, rather than eliminate it.

“Robots will do heavy, repetitive tasks like lifting. Humans will move to more judgmental tasks. It’s a transformation, not a replacement,” said the Amazon leader.

(According to CNBC)

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