Amazon's 'Just Walk Out' Grocery Checkouts, Pitched As AI-Powered Technology, Was Actually Relying On 1,000 People In India Acting As Virtual Cashiers: Report
Portfolio Pulse from Rounak Jain
Amazon.com Inc.'s 'Just Walk Out' technology, initially marketed as AI-powered, was actually reliant on 1,000 contractors in India for operation. Despite its innovative approach to cashier-less shopping, the technology required human intervention in 7 out of 10 sales, leading Amazon to shift focus towards 'Dash Carts' and traditional self-checkout systems in its Amazon Fresh stores. This pivot reflects the challenges and higher costs associated with the 'Just Walk Out' system.
April 03, 2024 | 11:10 am
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Amazon's 'Just Walk Out' technology was not fully automated and relied on human intervention, leading to a shift towards 'Dash Carts' and self-checkouts in Amazon Fresh stores.
The news reveals that Amazon's 'Just Walk Out' technology, which was a significant part of its innovation narrative, was not as technologically advanced as previously thought. This could potentially damage Amazon's reputation as a leader in retail innovation and lead to skepticism about its technological capabilities. The shift towards more traditional checkout methods, despite being practical, might be seen as a step back in innovation, potentially affecting investor confidence and the stock price in the short term.
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