Not Just Alexa
Artificial Intelligence in retail makes for a more pleasant shopping experience. AI has entered the homes of Italians in the form of the voice assistant but above all in companies, to support logistics to optimize transport, product deliveries, and packaging in particular. AI can be applied to different links of the supply chain, reaching to the core of the business: the product itself, the one that is delivered. How? In terms of anti-counterfeiting, thanks to machine learning algorithms that guarantee that customers receive authentic products. "At Amazon we are experimenting with different uses for AI, from the Amazon Go store, which uses computer vision to eliminate queues at checkout, to Alexa, our cloud-based voice service," confirms Giorgio Busnelli, director of consumer goods for Amazon. it and Amazon.es. "We also use AI in logistics. The goal is to make 50% of our shipments emission-free by 2030 and, thanks to AI, we continuously optimize the allocation of products within our network as well as delivery routes and van loads. We are also able to choose the best packaging options for shipments", continues Busnelli, "by identifying which products do not require additional packaging and which ones are suitable for flexible packaging".
What are the main delicate points of these procedures?
Our solutions based on artificial intelligence are the result of a machine learning activity: this is the most delicate point, in the sense that it requires work and attention. For example, given the dynamism and volumes of our catalog, it would be impossible to choose the appropriate packaging for each item, using manual inspections. For this reason, machine learning-based approaches allow us to determine the best quantity and type of package. That said, human contribution is and will remain central to designing, governing, inspecting and maintaining automatic processes.
How do you measure the economic return, if any, on technological investments in environmental and energy sustainability?
Investing in sustainability and collaborating with all the players in the supply chain brings a positive return to business, customers, the environment and communities. It would be shortsighted to address the problem using a private return perspective. In 2019 we co-founded the Climate Pledge, a commitment for companies to achieve zero CO2 emissions by 2040, ten years ahead of the Paris Agreement. This translates into major investments to bring a company as "physical" as Amazon to achieve carbon neutrality. Therefore, for example, we purchase renewal energy produced from non-fossil power plants with the aim of reaching 100% of our needs by 2025, and we also invest in start-ups to accelerate the development of clean tech.
What are the next areas of application of AI for you?
At Amazon, I am responsible for the consumer goods category and one area where I think AI may have interesting potential, is the use of augmented reality in retail, to better integrate the physical and online experience. Examples are solutions such as the Virtual Try On, through which customers can virtually apply a cosmetic product on themselves, or 3D animations to help them select furnishing accessories.
Giorgio Busnelli is director of consumer goods at Amazon.it and Amazon.es. He graduated in Economic and Social Disciplines from Bocconi University. "During my time at Bocconi I had the good fortune to meet professors and classmates with whom I could discuss, debate and have always an enriching exchange of opinions", underlines Busnelli. "I believe that Bocconi was a great fortune for me and an important formative moment for my personal and professional growth. It was thanks to Bocconi that I entered the world of professional jobs, starting from strategic consulting with an internship at McKinsey, where I worked for 17 years before joining Amazon".