
"Management also told its board that it expects a surge in orders, reaching twice the current level by 2033. "Robots" is another word for AI-based automation that can replace most of the people who work in its massive warehouses. These are central to Amazon's ability to deliver items to customers in one or two days. By most estimates, Amazon has 350 warehouses worldwide and another 1,200 logistics facilities."
"The Times quoted Daron Acemoglu, a professor at the Massachusetts Institute of Technology who has a Nobel Prize in economics. He said, "Nobody else has the same incentive as Amazon to find a way to automate." To accomplish this, the company's e-commerce division will need nearly a million robots. Presumably, the plan will save hundreds of millions of dollars a year."
Amazon hired over 200,000 part-time workers for holiday sales, indicating expected strong consumer spending that will boost e-commerce revenue. Many of those temporary hires may lose jobs next year, and numerous full-time positions may also be at risk. Confidential company documents reveal plans to automate large numbers of tasks in warehouses using AI-driven robots. Management projects order volume could double by 2033. Amazon operates roughly 350 warehouses and 1,200 logistics facilities worldwide. The company plans substantial AI investment and has an incentive to deploy nearly a million robots to cut costs and improve margins.
Read at 24/7 Wall St.
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