Amazon, one of the largest e-commerce companies in the world, stands out in artificial intelligence as in many different categories. Some statements by Stefano Prego, Amazon’s vice president of customer reception and global operations, to CNBC, reveal that artificial intelligence will be integrated into many of the company’s services.
Accordingly, Amazon has already begun to leverage artificial intelligence to continue dominating the e-commerce market. We can see the use of artificial intelligence in many areas, from customers finding what they want to planning the path of courier.
With the help of artificial intelligence, Amazon places products close to customers and makes deliveries faster
Perego stated that artificial intelligence will help determine delivery routes by evaluating conditions such as weather. The manager also says that the use of these technologies will improve online shopping and help users find what they are looking for.
However, these are not the most striking things. According to Perego, Amazon is focusing on a system called “regionalisation.” This strategy means using artificial intelligence to determine where to stock products. In other words, artificial intelligence will allow products to be placed close to customers. This will reduce the distance and increase the speed of deliveries. Of course, it should be emphasized that this method will work in places where the company’s warehouses are large.
Perego said, “I am sure you are familiar with the wide range of products we offer to our customers. Consider how complex the problem of deciding where to place these products is.” He adds that artificial intelligence can handle this quickly and products can be stocked at close distances.
This strategy uses hundreds of thousands to determine where and why certain things sold are in demand; even millions of products require analysis. The warehouses in the regions determined according to the analyzes are also filled with these products. According to Perego, the plan is already starting to work. The executive noted that 74% of products delivered to customers in the US come from regions close to them.
This move by Amazon is another example of the incorporation of artificial intelligence into the workforce by companies from different industries. For example, IBM recently stopped hiring to replace thousands of positions with artificial intelligence.
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