What: Amazon has developed a very concrete way to use AI, in predicting demand and delivery  needs

Why it is important: Not everything is about generative AI.

Amazon has significantly enhanced its delivery efficiency, announcing over 5 billion items delivered globally within a day, a 30% increase in same- or next-day delivery rate year over year. The company credits advancements in artificial intelligence for improving demand forecasting and inventory placement. This technological integration has allowed for a more regionalized inventory approach, leading to a 10% reduction in the travel distance of items and more orders being shipped from local sites.

The online retailer now offers same-day delivery in over 120 U.S. metro areas and has expanded the selection of items eligible for Same-Day or One-Day Delivery to "tens of millions." This marks a 20-fold increase in the selection of quickly deliverable items compared to when Amazon Prime first launched. Additionally, Amazon's strategic inventory management has increased the average number of items per box in the U.S., reducing the overall number of deliveries required and contributing to a more efficient distribution model.

Amazon uses AI to reach delivery speed milestones