Latest news with #Lab126
Yahoo
13-06-2025
- Business
- Yahoo
Amazon's Secret Weapon? How These AI Initiatives Could Be a Game Changer for the Stock.
Amazon is using AI to become more efficient and drive productivity. The company has already begun to see some solid operating leverage, but more should be on its way. These AI initiatives should be a big earnings driver for the company in the years ahead. 10 stocks we like better than Amazon › Amazon (NASDAQ: AMZN) announced several new artificial intelligence (AI) initiatives this month. While much of the investor focus when it comes to AI and Amazon has been on Amazon Web Services (AWS) and its cloud computing AI offerings, Amazon is also looking to use AI to improve its e-commerce business. The company has been laying the groundwork to use AI as a way to improve efficiency across its logistics and warehouse networks. Let's look at how these moves could be a game changer for the stock. Amazon recently unveiled a new initiative at its Lab126 unit to build smarter, more flexible warehouse robots. Unlike current models that are designed for a single task, Amazon is looking to use agentic AI to create robots that can understand natural language commands and act autonomously. The company said the robots would be able to do such things as unload trailers and then retrieve parts for repairs if needed. This type of advancement would ultimately help reduce labor costs and boost productivity. On the delivery side, Amazon is rolling out an AI platform called Wellspring to create highly detailed maps to help drivers navigate tricky drop-offs at places like large apartment complexes. These maps are already being used in the U.S. and could be integrated into smart eyewear that provides hands-free, real-time navigation. The goal would be to cut delivery errors and time, so drivers would be able to make more deliveries in a day. Its new SCOT (Supply Chain Optimization Technology) platform, meanwhile, is using AI to help predict customer demand for certain products based on price, customer location, convenience, weather, and sales events. While it's easy to know not to stock winter coats at a Nevada warehouse in the summer, the technology is more nuanced and can cater to different regional consumer tastes. For example, it would be able to predict which books may sell better in New York City than Boise, Idaho. Overall, the technology should help Amazon better allocate inventory, improve delivery times by having inventory closer to buyers, and help both increase sales while lowering costs. Another area where AI is starting to have a positive impact for Amazon is its e-commerce marketplace. It has AI tools that make it easier for merchants to create new, more compelling listings for its marketplace. Meanwhile, its ad unit has AI tools to help brands and merchants create more compelling ad campaigns and better target potential customers. Amazon's sponsored ad business has grown to become one of the largest digital advertising platforms in the world, and this high-margin business is one of Amazon's fastest-growing revenue streams. It also recently launched an AI agent, called Nova Act, that can navigate the web and perform tasks like shopping on behalf of users. Amazon is investing heavily in AI and not just in its AWS cloud computing business. The company is beginning to embed AI across its entire e-commerce ecosystem through things like AI-powered warehouse robots, better inventory forecasting, and faster last-mile delivery. This will all help Amazon drive efficiencies, lower costs, and increase productivity. Amazon's early efforts in these areas have already led to solid operating leverage within its e-commerce segment. For example, last quarter its North American segment saw a 16% increase in operating income on only an 8% rise in revenue. However, as these AI initiatives continue to progress, Amazon should be able to see even greater operating leverage. Of course, no investment is without risks. Amazon isn't immune to broader economic headwinds or trade tensions. However, AI has the potential to significantly improve the company's cost structure, which in turn should drive strong earnings growth. While investors like to focus on revenue growth, they shouldn't completely ignore how companies like Amazon can drive earnings growth by becoming more efficient. Amazon is leading the way in this regard, but expect this to be a big AI theme in the coming years across industries. You also can't ignore the strong growth Amazon is seeing with AWS. This is its largest segment by profitability, and it has a long runway of growth ahead as customers continue to use its services to build AI models and apps and run them on its infrastructure. While its valuation has risen off its recent lows, Amazon's stock is still attractively valued trading at a forward price-to-earnings ratio (P/E) of around 35. That's well below where it's traded historically, making it a solid buy at current levels. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy. Amazon's Secret Weapon? How These AI Initiatives Could Be a Game Changer for the Stock. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
05-06-2025
- Business
- USA Today
How Amazon is using AI to enhance warehouse automation and same-day delivery
How Amazon is using AI to enhance warehouse automation and same-day delivery Show Caption Hide Caption Amazon faces lawsuit as customers report disappearing refunds after returns Customers allege that Amazon reversed their refunds for returned products, leading to a lawsuit that challenges the company's advanced refund policy. Scripps News Amazon AMZN.O wants customers to know that artificial intelligence is not just for writing college essays. In a series of announcements Wednesday, Amazon demonstrated how stockroom robots, delivery people and its sprawling warehouses will all benefit from a hefty dose of artificial intelligence, speeding packages to customer doorsteps. The company said it is forming a new group at its Lab126 device unit focused on creating warehouse robots that will perform multiple tasks when prompted, a significant advance over today's robots that typically are designed for a singular job. Using so-called agentic AI, these robots will be able to unload trailers and then retrieve parts for repairs, according to Amazon. 'We're creating systems that can hear, understand and act on natural language commands, turning warehouse robots into flexible, multi-talented assistants,' Amazon said in a statement, without providing details such as what the robots might look like or cost. In case you missed it: Amazon is refunding some customers for purchases made as far back as 2018 Amazon described the advances ahead of a press event Wednesday at Lab126 in Sunnyvale, California, where it gathered robotics and logistics executives for demonstrations. Among the additional announcements are that Amazon is using generative AI to create more advanced maps for its delivery drivers, so that they can more efficiently deliver packages for the final few yards of their journeys. The specialized AI will provide Amazon fine detail on building shapes, as well as obstacles and anything else they may need to navigate a package drop-off. 'This innovation is making it easier for Amazon drivers to find the right delivery spot, especially in tricky places like big office complexes,' Amazon said. That technology could be critical to specialized eyeglasses Amazon is developing for delivery drivers that Reuters reported exclusively last year. The company hopes to outfit drivers with screen-embedded glasses that free their hands from GPS devices and give them turn-by-turn directions while driving, as well as while carrying packages at their destination. Finally, Amazon said it AI will help it more efficiently predict what products customers will need and where to improve its same-day delivery operations. On a more basic level, it means that winter coats likely will not be stocked in Phoenix warehouses in summer though Amazon suggested that other factors the software will consider are price, convenience, relying on factors such as weather and sales events, like Prime Day. In its announcement, Amazon promised to minimize waste through less carbon emissions and traffic as the result of the new AI. Reporting by Greg Bensinger; Editing by Michael Perry
Yahoo
05-06-2025
- Business
- Yahoo
Amazon launches new R&D group focused on agentic AI and robotics
Tech giant Amazon plans to launch a new group within its consumer product division that will focus on agentic AI. Amazon announced this new research and development group at an event on Wednesday, according to reporting from CNBC. This group will be based out of Lab126, Amazon's hardware R&D division that is behind tech including the Amazon Echo and the Kindle. The reason this agentic AI group is likely based at a hardware R&D center is that Amazon hopes this group will develop an agentic AI framework to use in the company's robotics efforts and to give the company's warehouse robots more skills. TechCrunch reached out to Amazon for more information. Error in retrieving data Sign in to access your portfolio Error in retrieving data
TechCrunch
05-06-2025
- Business
- TechCrunch
Amazon launches new R&D group focused on agentic AI and robotics
In Brief Tech giant Amazon plans to launch a new group within its consumer product division that will focus on agentic AI. Amazon announced this new research and development group at an event on Wednesday, according to reporting from CNBC. This group will be based out of Lab126, Amazon's hardware R&D division that is behind tech including the Amazon Echo and the Kindle. The reason this agentic AI group is likely based at a hardware R&D center is that Amazon hopes this group will develop an agentic AI framework to use in the company's robotics efforts and to give the company's warehouse robots more skills. TechCrunch reached out to Amazon for more information.
CNET
05-06-2025
- Automotive
- CNET
Amazon's Building Humanoid Robots to Speed Deliveries to You
Amazon has used drones to deliver packages, but according to an internal report cited by The Information, the retailers is planning to test out more human-like autonomous delivery methods. Namely, robots that would walk right up to your door to deliver items. The company is reportedly finishing work on a San Francisco-based obstacle park to work on the technology. It's unclear how soon the technology might be developed or used for real-world deliveries. Amazon has been touting its work in robotics for the home and for warehouse work, but this is the first time the company has made an explicit push into using human-like robotics for package delivery, which could replace human workers. The robots would use some of the same AI technology that the company is rolling across other areas of its business. Along with delivery robots, Amazon is working on humanoid robots that would work in its warehouses, according to Reuters, reporting on an event at Amazon's Lab126 research facility. In a post on its X account, Amazon pointed to a story about how it's using agentic AI across several fronts: "We're developing foundation models that will allow fulfillment center robots to understand and act on natural language commands. Imagine saying 'Pick up that yellow tote' and having a robot do it instantly. The future of robotics is here, and it speaks your language." The company has hundreds of robotics-related job listings posted in the US, Canada, Germany and Luxembourg. Amazon did not immediately respond to a request for information.
