How Amazon Maximizes Efficiency Using AI

Not too long ago, consumers made most of their shopping in person. Online shopping was not the big industry it is today, shipping costs were too high, and delivery would take an average of 1-2 weeks. However, this isn't the case anymore. 

Amazon, a multi-billion dollar company, reshaped the online-shopping experience. CEO Jeff Bezos founded the company in his home garage originally as an online bookstore before it expanded to the market it is today. 

How did they achieve that level of success? With the help of Artificial Intelligence (AI) technology. Amazon is well-known for how fast they can ship products to their customers: with Amazons' prime subscription you get guaranteed shipping within 1-2 business days on eligible items. In doing so, they achieved a high level of customer satisfaction that is enabling them to grow continuously.

Amazon’s use of Keva robots at one of their fulfillment centers.

Amazon’s use of Keva robots at one of their fulfillment centers.

For Amazon to achieve those fast shipping times, they had to maximize efficiency in their warehouses. Amazon has recently been investing a lot of their money into Artificial Intelligence research and development. They have spent over $700 million to purchase over 100,000 AI robots, developed by Kiva Systems, for use at multiple of their warehouse/fulfillment centers locations (26 of them to be exact). Keva Robots are programmed to stock, sort, and deliver products inside of the warehouse at a faster and more efficient rate than humans, allowing Amazon, Inc to fulfill their promise to customers for overnight shipping. 

However, these robots are not replacing humans at the warehouses because Amazon believes that the future of AI does not mean replacing humans but instead having humans and robots working together to achieve the best efficiency rates.

Amazon continues to expand and invest a lot of money into different research, with the biggest being Artificial Intelligence.

AmazonAnthony Shorrocks