How Amazon Uses AI

Amazon was one of the first companies to incorporate artificial intelligence (AI) into its business model, even restructuring itself to benefit from this technology in several areas – with its digital transformation ranging from warehouse integration to Alexa and seamlessly transferring AI from one Amazon department to another…

Chatbots are used by Amazon to support customer interaction, expedite order facilitation and improve the overall shopping experience for its customers and it continues to make advancements in this arena with hand-authored vocabulary response templates. 

Plus, Amazon uses AI to create a “personalized shopping experience” for its customers, recommending products based on customer browsing history, purchases and saved items. Amazon also uses AI algorithms to showcase best selling products in the aforementioned categories and provides groupings of similar items recently viewed by other Amazon shoppers.

Amazon is also one of the first companies to aid its shoppers with a virtual assistant. Amazon’s voice-powered Alexa helps customers with things like finding products and checking out.

Additionally, to avoid the high costs of excess inventory, Amazon uses AI for product purchase forecasting to narrow down the inventory of unnecessary items and, conversely, to keep more popular items on-hand so they are more quickly accessible.

Product fulfillment improvement also trickles down to the warehouse level, assisting Amazon workers in their never ending quest to efficiently locate products and keep track of inventory…and, as Amazon dots its I’s and crosses its T’s, AI optimizes its delivery routes as well.

Leave a Comment