This week, Amazon raised its investments in artificial intelligence as the eCommerce firm and rival Walmart adopt new technologies to stay competitive.
Boosting Efficiency in Logistics
Amazon’s $1 billion Industrial Innovation Fund is prioritizing investments in companies that leverage AI and robotics to enhance efficiency within its logistical network.
Franziska Bossart, head of the corporate venture capital arm, revealed plans to intensify investments in this area to streamline operations.
Key Investments
The fund has already made 12 investments, including support for Mantis Robotics, a company developing a collaborative robotic arm to work alongside human workers. Additionally, Amazon has committed up to $4 billion to Anthropic, a startup specializing in generative AI.
Expansion in B2B Offerings
Amazon is leveraging new AI capabilities to expand its revenue streams in the business-to-business (B2B) sector.
Amazon Bedrock, the eCommerce giant’s service offering foundation models from internal teams and external AI startups, announced plans to incorporate models from Mistral AI.
Mistral AI’s generative AI technology is tailored for tasks like text summarization, question answering, and code completion.
Walmart’s Utilization of AI
Walmart is harnessing AI to drive efficiency in its stores, particularly focusing on reducing labor costs at its Sam’s Club subsidiary.
Sam’s Club President and CEO Chris Nicholas highlighted the implementation of computer vision technology to streamline the process of checking self-service customers’ receipts at the door, eliminating the need for manual verification by employees.
Company-Wide Integration
Walmart is embracing AI across its entire business operations.
CEO Doug McMillon emphasized the potential of generative AI to enhance customer experiences, improve productivity for associates, and optimize operational costs.
The company sees significant opportunities in leveraging AI technologies to drive innovation and efficiency across various aspects of its business model.