In an effort to continue to dominate online commerce, Amazon resorts to artificial intelligence to help you with your operations. According to reports, the company uses artificial intelligence to determine where products are most in demandto speed up delivery. Stefano Perego, Amazon’s vice president of customer service and global operating services, described the approach in an interview with CNBC.

Artificial intelligence will help Amazon plan shipping routes and schedule stops based on unforeseen circumstances such as the weather. In addition, the online shopping experience will be improved to make it easier for shoppers to find what they are looking for. According to Perego, Amazon’s big push is what the company calls “regionalization“, that is, the use of artificial intelligence to discover where to place high-demand inventory in order to reduce delivery time.

“I’m sure you’re already familiar with the huge selection we offer to our clients.“, Perego told CNBC. “Imagine how complex the problem of deciding where to place this item of inventory is. And position it in such a way as to reduce the distance to customers and increase the speed of delivery.“

To reduce shipping times with a regionalization strategy, Amazon needs to quickly analyze data points and patterns from hundreds of thousands, if not millions, of products to determine where and perhaps why certain products are in demand in certain geographies. These goods will then be shipped to warehouses located in high-demand areas. Perego told the media that the plan is working and that 74% of products shipped to customers come from warehouses in his region.

Amazon dominates AI

Amazon’s use of artificial intelligence to improve its supply chain and speed up delivery demonstrates the company’s continued commitment to staying ahead of the competition in the e-commerce space. The ability to predict demand and strategically allocate inventory allows Amazon to serve customers more efficiently, delivering a fast and positive shopping experience.

However, it is worth noting that the use of artificial intelligence in logistics also raises questions about the privacy of customer data and the impact on local communities where warehouses are installed. It is important that Amazon and others in the industry take adequate measures to protect consumer data and minimize any negative impact in the areas in which they operate.

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Source: CNNBC.

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