One of the biggest conglomerates in the world, Amazon has been around and touching lives for almost three decades now. From being a book-selling platform in 1994, the company has come a long way to offer a plethora of products and services to its customers worldwide. And now, Amazon has managed to establish itself as one of the earliest and most successful adopters of artificial intelligence too.
AI is an emerging technology that is touching several lives at an enormous pace. Amazon, as one of the biggest companies in the world operating in the digital domain, is already utilizing mature artificial intelligence mobile applications services across various domains, such as logistics and warehousing, to streamline its operations. According to a recent report, as many as 35% of total sales by Amazon are driven by AI-based recommendation engines. Amazing, right?
Amazon & AI – A Brief Overview
From smart robots in Amazon’s warehouses to the conversation AI platform Alexa runs on, everything stands testimony to how helpful artificial intelligence can be if dealt with intelligently. The top-level management has time and again talked about following the ‘flywheel approach’ they follow to keep up the momentum and conserve energy. Thus, the innovations in one department are shared with others to help other parts of the organization make the most out of them.
In addition to their obsession with keeping their customers above all else, Amazon’s constant efforts towards refining their processes using emerging technologies, such as flywheel AI, help them steer in the direction of greatness.
How Does Amazon Use AI?
Amazon has embraced artificial intelligence in a number of ways to improve its operations and enhance the customer experience. Some of the ways in which Amazon uses AI have been listed below.
Personalized Product Recommendations
One of the most well-known ways that Amazon uses AI is through its personalized product recommendations. When customers visit the Amazon website or app, they are presented with a list of recommended products based on their previous purchases and browsing history. These recommendations are generated using machine learning services and algorithms that analyze customer data and identify patterns and trends. For example, if a customer frequently buys books in a particular genre, the algorithm might recommend similar books that the customer might be interested in. Personalized product recommendations help Amazon to increase customer engagement and sales, as customers are more likely to make a purchase if they feel that the recommendations are relevant to their interests.
Supply Chain Optimization
Amazon has a vast and complex supply chain, with millions of products being shipped to customers around the world. To manage this process efficiently, Amazon uses AI to optimize its supply chain in a number of ways. This includes forecasting demand for products, optimizing inventory levels, and routing orders to the most efficient fulfillment centers. For example, Amazon uses AI and ML to predict which products will be popular in the future and to adjust its inventory levels accordingly. This helps reduce waste and ensure that customers receive their orders in a timely manner.
With millions of transactions taking place on its platform every day, Amazon is at risk of fraudulent activity. To protect its customers and its own interests, Amazon uses AI for detecting and blocking suspicious account activity, as well as identifying and removing fraudulent listings. For example, if a customer's account is accessed from a new location, the AI system might flag this as suspicious activity and require the customer to verify their identity before allowing them to make a purchase.
Amazon's virtual assistant, Alexa, uses artificial intelligence to provide quick and accurate answers to customer questions. Alexa is integrated into a variety of Amazon products, including the Echo smart speaker, and can be used to answer questions about products, place orders, and provide information about the weather, traffic, and more. By using AI to handle customer service inquiries, Amazon is able to reduce the burden on its human customer service representatives and provide a more efficient and convenient experience for customers.
Image and Video Analysis
Amazon uses AI to analyze images and videos in order to improve the accuracy of its product recommendations, as well as to identify and remove inappropriate or offensive content from its platform. For example, if a customer uploads a photo of a product they are interested in purchasing, the AI system might analyze the photo to identify the product and suggest similar products that the customer might be interested in. Similarly, if a customer uploads a video that contains inappropriate or offensive content, the AI system might flag the video for review by human moderators.
In order to keep its fulfillment centers running smoothly, Amazon uses predictive analytics to predict when equipment is likely to fail. By analyzing data from sensors and other sources, the AI system can identify patterns that indicate that equipment is starting to malfunction. This allows maintenance to be scheduled before a problem occurs, reducing downtime and improving efficiency.
Amazon's use of artificial intelligence has helped the company to become more efficient, improve the customer experience, and increase its profitability. As AI technology continues to advance, it is likely that Amazon will continue to find new and innovative ways to use it to improve its operations.