E-commerce

Amazon taps generative AI for delivery efficiency

Image: Adobe Stock

September 20, 2024

Amazon is leveraging generative AI to boost efficiency in deliveries, according to a CNBC report.

Use cases include delivery route optimization and warehouse robot technology, according to an interview with Steve Armato, VP of transportation technology and services at Amazon.

Technologies like generative AI have fueled growth in same-day and next-day deliveries, with 60% of March Prime deliveries falling in the category for the top 60 metro areas in the U.S., according to Armato.

"It seems subtle, but at this scale, getting just one more product in the right spot means that it's shipping less distance when you order it," Armato told CNBC. "Generative AI is the next big evolution in technology. "It's remarkable, and we're already applying it in very practical ways across our operations."

The interview comes just weeks after Amazon announced a new grocery delivery option for its Prime members. The $99.99 annual plan, also available at $9.99 a month, is an add-on subscription.