Amazon has long been a leader in revolutionizing delivery services, and now it’s doubling down on generative AI to take same-day shipping to the next level. What started with two-day shipping in 2005 and became one-day shipping by 2019 is now evolving as Amazon uses advanced AI technology to speed up delivery routes, optimize warehouse operations, and predict demand with more precision. Steve Armato, Amazon’s VP of transportation technology and services, revealed that 60% of Prime orders in top U.S. cities were delivered the same day or next day as of March 2024, and AI is at the heart of improving that number.
During an exclusive look inside Amazon’s largest California sort center, Armato shared how generative AI is transforming the company’s operations. It powers everything from smarter warehouse robots to better stock predictions, aiming to streamline deliveries and make Amazon’s logistics even faster. But not everything about AI is met with universal approval—concerns about its high energy usage and the potential for replacing human workers have sparked debate.
Amazon has significantly ramped up its robotics division, growing from 350,000 robots in 2021 to over 750,000 in 2023. These robots, powered by generative AI, are more efficient than ever. They can navigate around each other with ease, prioritize next-day deliveries, and handle a wide range of products thanks to advanced machine learning models. As part of its AI-driven strategy, Amazon has partnered with AI startup Covariant to enhance the capabilities of these robots, with a focus on tasks that require careful handling of various items.
Despite the growing role of automation, Amazon is keen to show that AI and robots aren’t here to replace workers. Instead, they’re intended to ease the burden on employees by reducing repetitive tasks and creating new, higher-paying roles. The company is investing $1.2 billion to retrain 300,000 workers by 2025, preparing them for the future of work alongside AI and robots.
With more than 2 billion items delivered same-day or next-day in early 2024, Amazon’s use of AI is clearly improving speed and efficiency. The company’s ability to predict where to stock items before customers even place an order is a major breakthrough, leading to reduced delivery times and a lower carbon footprint. However, the energy demands of running large-scale AI models pose a challenge to Amazon’s ambitious goal of reaching net-zero carbon emissions by 2040.
From enhanced robotics in warehouses to hyper-personalized shopping experiences for customers, Amazon’s investment in generative AI is reshaping every aspect of its business. As the retail giant pushes forward with AI-powered solutions, the question remains: Will these advancements bring long-term profitability, or will the costs of AI outweigh the benefits? Only time will tell if Amazon’s bet on AI delivers the results it’s hoping for.
