Amazon’s Strategic Investments in AI and Logistics Begin to Yield Results
Amazon's stock performance has lagged behind cloud computing rivals and retailers over the past five years, with shares rising just over 30%. This underperformance is attributed to previously elevated valuations and selling pressure from founder Jeff Bezos and his ex-wife.
Behind the scenes, Amazon has been aggressively investing in logistics, automation, artificial intelligence, and robotics. The company now operates one of the world's most advanced fulfillment systems, powered by its DeepFleet AI model coordinating over a million warehouse robots.
These AI-driven systems go beyond basic automation. Some robots detect damaged products before shipment, reducing costly returns, while others can self-repair to maintain operational efficiency. AI also optimizes inventory distribution across warehouses and streamlines delivery routing.
