How Amazon Go’s AI is getting smarter about grocery shopping?

11 Feb

Consider a scenario in which you know exactly how many personnel you will require for a shift. Consider understanding which products should you put on discount. Consider a supply network that provided the optimal number of things at the optimal time. It may sound high-tech and futuristic, but the future has arrived.

What’s behind these marvels is what will soon be behind every successful grocery store. It already is if you think of Amazon. It’s because of artificial intelligence or AI.

Amazon started Amazon Go which is a chain of convenience stores in the United States and the United Kingdom. The stores offer a cashless and seamless checkout-free shopping experience.

Amazon Go Grocery is the first grocery shop to provide this service. Just Walk Out Shopping allows you to come in, take what you want, and just walk out. Amazon Go Grocery has everything you'd expect from a neighborhood grocery store, including fresh vegetables, meat, and seafood, as well as bakery products, household basics, and easy-to-make meal alternatives. We have a variety of organic and conventional products from well-known brands, as well as unique finds and local favorites.

With our Just Walk Out Shopping experience, you’ll never have to wait in line. No lines, no checkout. Amazon Go stores were visually tested by a team of Amazon executives before revealing the work to Amazon founder Jeff Bezos in 2015. The first store opened on January 22, 2018. The flagship store sells products such as prepared foods, meal kits, limited groceries, and liquor. A larger variant, Amazon Go Grocery, opened in Seattle's Capitol Hill neighborhood on February 25, 2020. As of March 2021, there are 27 store locations in the United States, and 3 in the United Kingdom.

Technology used and its implementation

To automate Go shops, Amazon employs a number of technologies, like computer vision, deep learning algorithms, and sensor fusion for the buying, checkout, and payment procedures related with a retail transaction.

The shop idea is viewed as a game-changing model that leverages the popularity of cellphones and geofencing technologies to optimize the consumer experience, as well as supply chain and inventory administration.

The "simply walk out" artificial intelligence-powered retail concept allows customers to explore, pick things, and exit the store without having to wait in line. Alternatively, computer vision and machine learning-based tech, in conjunction with on-shelf sensors and concealed cameras, follows every move of the consumer, automatically determining when items are removed from or returned to the shelves.

Customers shop at Amazon Go shops by downloading an app. Customers will not need to download an app or have an Amazon account to shop at non-Amazon retailers that use this technology. Instead, they'll insert a credit card into a gated turnstile as they enter the shop.

For example, after entering the shop, customers can simply take items off the shelves, and the Just Walk Out system will keep track of them in a virtual cart. Once a customer walks out, their credit card will be charged for all of the items they take with them.

Amazon will collaborate with shops to install the required technology on shelves, such as cameras and weight sensors. The e-commerce behemoth will also provide help 24 hours a day, seven days a week. Everything else is up to the merchant, including shop selection and employing store workers for customer help.

Amazon stated that once the 'Just Walk Out' technology is installed in a store, it will "only gather the data required to present consumers with an accurate receipt."

Given the breadth of Amazon's tools, they have the opportunity to learn more about each of its consumers and scan their normal purchasing behaviors. With AI, it highlights the learning potential, where Amazon can tap into the enormous pool of data acquired and utilize it to their advantage, such as giving customized items to consumers — thereby introducing greater personalization.

New Amazon Approach To Grocery

Although many prices have decreased since Amazon purchased Whole Foods, the store still tends to feature more expensive items that are organic and locally sourced. On the other hand, Amazon Fresh is targeted at Prime customers looking for lower prices.

The goal of the store is to reach a wider variety of customers, ranging from lower-income shoppers looking for a deal to higher-income customers who want the convenience of grocery pickup and delivery. So far, pricing at Amazon Fresh seems to be in line with what customers would expect at Walmart or Aldi—two retailers that are known for low prices.

The growth of Amazon Fresh doesn’t mean Amazon will ditch Whole Foods, it simply means the company is looking to expand its impact in grocery and reach more customers.

According to Amazon, the store only offers a selection of ready-to-eat breakfast, lunch, dinner and snack options, as well as essentials such as bread and milk.

Reaction to Amazon's latest foray into grocery stores is split between people who welcome the added convenience and those concerned by what this means for cashier workers’ jobs. If this innovation is broadly accepted over time by retailers, it would without a doubt change the landscape of the retail industry, and in a big way.

Tech-Driven Grocery Shopping

Amazon is recognized for its tech-centric brick-and-mortar experiences, most notably their cashier-less "Just Walk Out" technology. Amazon Fresh has the potential to transform the ability to shop and go, which has hitherto been restricted to smaller, convenience-type businesses rather than huge grocery stores.

Amazon is testing Just Walk Out technology at an Amazon Fresh location in Illinois.If the technology is successfully scaled, the retail giant may roll out its model to all existing stores in the Whole Foods chain and could create widespread cashier-less grocery shopping, which would revolutionize the experience.

Bottom line

Consumers preferred not to contact humans when performing errands, according to the 2020 Retail Consumer Behavior Poll. Amazon obviously recognizes this, since the entire process of purchasing in its grocery shops involves no human interaction, however, there will be workers on the ground to answer their questions.

This demonstrates that Amazon's new grocery store not only delivers a flawless shopping experience, but it also adjusts to current consumer tastes and preferences. Furthermore, human resources might be better employed for more complicated activities, making the firm as a whole more efficient.

Technology is continuously growing and influencing our lives in ways we aren't even aware of. Keeping up with the newest technical breakthroughs is thus a never-ending task.

So, what is Amazon's next step? Perhaps you could have Alexa handle your grocery shopping? Whatever it is — Amazon is clearly doing something right by being at the forefront of technical innovation.