TechCheck Amazon’s big bet on “Physical AI” 6/6/25
Jun 6, 2025
Join Kate Rooney, a CNBC correspondent specializing in technology and business, as she delves into Amazon's transformative journey with AI and robotics. Discover how Morgan Stanley highlights Amazon as an underappreciated Gen AI winner. The conversation reveals the significant savings automation can generate for Amazon's operations, the technological advancements behind these shifts, and the implications for employment in the rapidly evolving e-commerce landscape.
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Amazon's AI Cuts Logistics Costs
- Amazon uses AI and robotics primarily to cut costs in its $200 billion logistics operations.
- This strategy boosts efficiency and could raise e-commerce margins from 11% to 15%.
Physical AI Blends Mind and Body
- Amazon calls its robotics efforts "physical AI" blending mind and body for adaptable robots.
- These robots handle menial tasks to improve efficiency and reduce customer costs.
AI Impact on Amazon Jobs
- Amazon currently sees AI and robotics as creating different or more jobs, not immediate layoffs.
- However, increased robotics could theoretically reduce human roles and cut costs down the line.