Recently, according to foreign media reports, Amazon has been utilizing generative AI technology to develop smarter warehouse robots, aiming to create a more ergonomic work environment while improving inventory placement predictions, ultimately enhancing same-day delivery service efficiency.

As of March 2024, 60% of Prime orders in the top 60 U.S. metropolitan areas were delivered either on the same day or the next day. Amazon is leveraging generative AI to further optimize this service. For example, strategically adding an item in the right warehouse location can significantly reduce shipping distances.

Since 2020, Amazon has been using Transformer architecture to develop demand forecasting and supply chain optimization models, marking the beginning of its generative AI technology applications. However, the use of this technology has raised concerns about energy consumption and workforce displacement. The number of robots in Amazon warehouses has grown from 350,000 in 2021 to over 750,000 by 2023.

To enhance the intelligence of warehouse robots, Amazon introduced a new AI model in 2022, which improved the flexibility of robot operations. These robots navigate autonomously via QR codes, avoiding obstacles with precision and reaching their destinations without human intervention. Additionally, Amazon partnered with AI startup Covariant to enhance robot handling capabilities and is developing a bipedal robot named Digit to manage more complex tasks like item picking and handling.

Amazon has emphasized that despite the increasing number of robots, human jobs are not being replaced. Instead, the technology is designed to ease the workload on employees and create new roles, such as robot maintenance. The company plans to invest $1.2 billion over the coming years to upskill more than 300,000 employees, ensuring they are equipped to adapt to new work environments and technological needs.

Furthermore, Amazon has faced scrutiny over its workplace injury record, especially during Prime Day promotions when injury incidents tend to rise. Amazon is working on improving efficiency through algorithms that reduce the walking distances and bending movements required by workers, enhancing workplace safety.

According to Amazon, during the first quarter of 2024, the collaboration between intelligent robots and employees enabled the same-day or next-day delivery of over 2 billion items. Moreover, by optimizing product placement in warehouses through generative AI, Amazon has further reduced shipping times for customer orders.

Despite the potential of generative AI, its environmental impact remains unclear. Training and operating these AI models is energy-intensive, seemingly at odds with Amazon’s pledge to achieve net-zero carbon emissions by 2040. However, Amazon claims that AI helps reduce the carbon footprint of package deliveries. The company has deployed more than 20 machine learning models to optimize the routes of its 390,000 delivery drivers, reducing emissions.

Beyond its warehouses, Amazon has also introduced generative AI to benefit sellers and shoppers. The newly launched Amazon Personalize AI tool offers ultra-personalized product recommendations. Sellers can use generative AI to write product descriptions or generate seasonal and lifestyle-based product images. For shoppers, Amazon began integrating AI-generated product review summaries on its site in 2023 and introduced a generative AI shopping assistant named Rufus in February this year.