Amazon Prioritizes Use Of Artificial Intelligence To Increase Delivery Speed

Amazon prioritizes AI usage to optimize its inventory. (photo: Twitter @awscloud)

JAKARTA - Amazon is prioritizing the use of artificial intelligence (AI) to increase delivery speed by reducing the distance between products and customers.

In an interview with CNBC on May 15, Stefano Perego, Vice President of Customer Fulfillment and Global Operations Services for North America and Europe on Amazon, said artificial intelligence played a role in various aspects of Amazon's operations.

This includes using AI for transportation, such as mapping and route planning, as well as considering factors such as weather conditions. In addition, AI helps customers find the desired product while searching on Amazon.

Currently, Amazon prioritizes the use of AI to optimize its inventory. Perego emphasizes the importance of placing inventory as a crucial area to reduce the cost of providing services:

"Imagine how complex the problem is in deciding where to place the inventory unit. And put it in such a way that we reduce the distance to meet customers, and increase the speed of delivery," Perego was quoted as saying by Cointelegraph.

Amazon has prioritized "regionalization" initiatives aimed at delivering products to customers from nearby warehouses rather than remote locations. However, the achievement of this goal requires advanced technology to analyze data and patterns to predict product demand and determine optimal inventory placement.

AI plays a crucial role in achieving this goal. By strategically placing the product closer to the customer, Amazon can facilitate shipments at the same time or the next day, similar to its Prime subscription service.

According to Perego, the company's efforts, in this case, have been successful, with more than 74% of customer orders in the United States being met from the nearest distribution center.

On April 13, Amazon announced the launch of Bedrock, an artificial intelligence model that will allow Amazon Web Services users to build a generating AI from the basic model.