Amazon wants to use artificial intelligence (AI) to minimize the distance between its goods and customers.
The e-commerce giant wants to avoid long-distance delivery by using AI to predict inventory for regional warehouses.
AI Will Ratchet up Amazon Automation
The new technology could analyze data patterns to quicken receiving times to same or next-day delivery. The company already stocks 74% of orders in regional warehouses. Robots help Amazon fulfill 75% of orders by performing repetitive tasks.
Earlier this year, Goldman Sachs predicted automation could cost the labor market 300 million jobs. Amazon suggests that automation will promote jobs needing high levels of human judgment.
However, AI could soon render even specialized professions obsolete.
Google recently unveiled the latest version of its AI assistant Bard capable of writing computer software, while its new large language model PaLM 2 matched clinicians’ ability in a medical exam.
The firm can also audibly and visually translate English video lectures for a limited client set.
But creative professions also face mounting pressure from generative AI tools.
AI recently created a synthetic song performed by Drake and The Weekend, while other tools can create art blending styles from different eras.
Music labels also have asked Spotify to prevent AI tools from scraping data to create songs like the recent synthetic hit by Drake and The Weekend.
Crypto Shows No Signs of Suffering
However, businesses also see an upside.
According to Gartner, the number of firms deploying AI grew by 270% in the four years ending in 2022. E-commerce led the way, followed by fintech and online media.
China’s Alibaba used AI to reduce delivery errors in its logistics department by 40%. In addition to lowering operational costs, AI helps Amazon earn 35% of its revenue from personalized recommendations. AI voice searches also enable quick purchases.
Decision-makers expect the market for conversational AI tools like ChatGPT to grow to $14 billion by 2025. Chatbots comprise a significant chunk of AI adoption in e-commerce.
However, the AI hype has not come at the expense of e-commerce interest in crypto.
Amazon’s cloud-computing business announced a recent partnership with Ava Labs to promote the institutional adoption of cryptocurrencies.
A recently-leaked email suggested that Amazon could soon offer non-fungible tokens (NFTs) in line with a 2022 statement by CEO Andy Jassy. However, the link to the NFT gallery in the e-mail appeared to be broken.
Over 85% of U.S. merchants surveyed by Deloitte see catering to crypto customers as a top priority despite the crypto winter. Ownership reached 420 million in 2023, roughly following the trend of internet adoption.
A 2022 BitPay report suggests that 35% of tech-driven consumers prefer a merchant offering crypto payments. About a quarter of that group said they would switch to a retailer offering crypto.
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