Amazon is heavily investing in robotics and AI to increase efficiency and reduce delivery times in its warehouse network. According to Financial Times, this investment includes over 750,000 mobile robots, tens of thousands ofrobotic armsand autonomous systems, and over $1 billion in worker training.

The company aims to lower costs, improve safety, and compete with rivals like Walmart who are also investing in automation technologies. This shift is transforming warehouse operations, impacting worker roles and raising concerns about safety and labor conditions.

Amazon’s robotics operation began with the $775 million acquisition of Kiva Systems in 2012. This division, now Amazon Robotics, has deployed a variety of robotic systems across its logistics operations.

‘Each one is their own beast,” says Jonathan Ramey, speaking about the robots he maintains. ‘They work through thousands of packages an hour and they don’t let up.”

Robots are handling an increasing volume of packages, integrating artificial intelligence to enhance efficiency in sorting and fulfillment centers. This year, Amazon plans to spend $100 billion in capital expenditure, a significant portion of which is allocated to robotics and AI.

Amazon is a major user of industrial robots, constantly seeking to improve its technology. CEO Andy Jassy aims to drastically reduce delivery times, driving the company’s ongoing pursuit of automation.

‘Our robotics touch billions and billions of packages that we ship each year,” says Tye Brady, chief technologist at Amazon Robotics. It is a ‘great flywheel” that increases productivity while reducing the strain and monotony for human workers, he adds.

• Amazon has deployed over 750,000 mobile devices, along with tens of thousands of robotic arms and autonomous systems, within its network.
• The company utilises more than six types of robotic systems, including the Kiva, Hercules, and Titan robots, which can lift over a tonne.
• The Cardinal robotic arm employs suction cups, sensors, and cameras to carefully lift and move items without causing damage.

Amazon develops its own software and tools, utilising hardware from manufacturers like ABB and Fanuc. While robotics are integrated throughout the fulfillment process, Amazon emphasises the continued role of human workers.Eva Ponce, a director at the MIT Center for Transportation & Logistics, acknowledges that technology is replacing some manual tasks, particularly heavy lifting. However, she notes the creation of new opportunities within warehouse operations.

‘Companies are investing more in upskilling associates . . . ensuring they’re ready for a new style of work,” Ponce adds. ‘More complex tasks will still need to be done by people.”

Human workers remain essential for handling irregularly shaped or improperly labeled packages, as well as inspecting returned items. Since 2019, Amazon has invested approximately $1.2 billion in training workers for maintenance roles.

Amazon disputes the idea of replacing all workers with machines, highlighting its increased workforce since the Kiva acquisition. The company now employs over a million more people than it did in 2012.

Despite this, working conditions in Amazon warehouses are a point of contention with labor organizations. They argue that robotics-enabled warehouses accelerate work pace and increase injury risk by pushing workers beyond safe limits.

A US Senate committee report from December revealed a 30 per cent higher injury incidence rate in Amazon warehouses compared to the industry average.

Amazon counters that robotics and AI contribute to its safety objectives, aiming to improve ergonomics and reduce heavy lifting. Cost reduction is a primary motivator for Amazon’s robotics investment, allowing the company to maintain competitive prices and achieve faster delivery times.

During a recent earnings call, Jassy affirmed the company’s continued investment in robotics and automation. A new warehouse in Shreveport, Louisiana, features ten times more robotic equipment than previous models, resulting in an estimated 25 percent reduction in fulfillment costs.

Morgan Stanley analysts project that increased investment in this type of warehousing will save Amazon approximately $10 billion annually by 2030. Competitors like Walmart are also making significant investments in robotics and automation, driven by efficiency goals and labor shortages.

‘These technologies are disruptive,” Ponce says. ‘The warehouse of the future is a combination of robotics, sensors and computer vision.”

Amazon is increasingly integrating artificial intelligence. The Proteus unit employs computer vision, enabling robotic systems to navigate alongside human workers. Proteus allows for smaller warehouse footprints, while collaboration with Nvidia on “digital twins” – simulated warehouse environments – accelerates autonomous robot training.

‘This has completely changed how we do business . . . [And] it’s just the beginning,” says Brady.