Amazon (AMZN) seeks to overhaul fulfillment with AI and robotics capabilities

Amazon (NASDAQ: AMZN) is set to introduce "an array of new artificial intelligence and robotics capabilities into its warehouse operations," according to an early Wednesday report by the Wall Street Journal.

In a move that aims to "reduce delivery times and help identify inventory more quickly," the company is making changes to the way products are sorted at fulfillment facilities by introducing "AI-equipped sortation machines and robotic arms."

The new robotic system, named Sequoia, "is designed for both speed and safety," and has so far been launched in one of the company's Houston, TX warehouses. Amazon claims it reduces "the time it takes to fulfill an order by up to 25%," and "can identify and store inventory up to 75% faster."

The company declined to comment on potential effects on its warehouse headcount, noting that "it doesn’t see automation and robotics as vehicles for eliminating jobs," and added that Sequoia is meant to work alongside warehouse employees "in a way that should reduce injuries."

Amazon is one of many companies pursing advancements in AI and robotics to enhance its fulfillment operations - Walmart, one of AMZN's key rivals, also recently announced introduction of robotic arms in its warehouses.

Shares of AMZN closed at $131.47 yesterday, and are up over 53% in 2023.

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