Part 3/8:
This week, Amazon implemented a series of incremental AI updates, aimed specifically at improving its delivery processes and enhancing the functionality of its robotic fleet. These advancements play a vital role in streamlining logistics, particularly in warehouses where automation can significantly reduce operating costs. Presently, Amazon is operating at about 11% margins in its e-commerce division—a figure that Gene Munster of Deepwater believes could rise to as high as 15% with successful AI and robotics integration.
Amazon's push towards "physical AI" is seen as a way to merge cognitive functionality with mechanical operations, producing robots that are more efficient and capable of handling repetitive tasks, ultimately benefitting the company’s bottom line.