Artificial Intelligence and Machine Learning: How Amazon has Reorganized Inner Workings - IQVIS Inc.

Artificial Intelligence and Machine Learning: How Amazon has Reorganized Inner Workings

Amazon Prime Day, a big day for shoppers to save a great deal of money while shopping. Amazon is one of those companies utilizing the latest and innovative technologies to manage their inner workings. The company has set an example when it comes to offering customer experience and unveiling the internal barriers to help other companies do the same. Amazon is considered as a groundbreaker in the customer experience revolution, has moved to the next level by re-shaping company around its Machine Learning and AI efforts.

Flywheel: AI Management Strategy Used by Amazon

Amazon adopted a framework called the Flywheel that helps the company guides its operations. In general, a Flywheel is a simple tool designed to store rotational energy. The flywheel works by storing energy when the machine is not working at a constant level. In simple words, the flywheel maintains the energy at a particular level and extends to other areas of the machine.

The flywheel approach helps Amazon keep AI innovation pulsating and boosts energy and knowledge to extend to other areas of the company. Amazon’s flywheel approach means that innovation around ML in one area of the company fuels the efforts of another team. The team incorporates the technology to drive their products, which ultimately affects innovation all over the organization.

What is produced in one part of Amazon acts as a catalyst for machine learning and artificial intelligence growth in other areas? The company was the first one to use the technology in order to drive its product recommendations. With the advancement and innovation in the machine learning and AI, the flywheel approach has proved to be the basis of the expansion of business of Amazon. Thus, the approach connects the organization together and at present, the majority of companies silo their AI efforts and do not integrate them all over the company.

AI is not limited to a Particular Amazon Office

Artificial Intelligence is not only limited to a single Amazon’s office. The information is spread throughout departments. The product recommendation team to enhance its product forecasts utilizes machine Learning technology. The insights are then shared throughout the organization. The AI and Machine Learning empower three products by Amazon i.e. Amazon Go Store, Amazon Recommendation Engine, and Alexa.

Amazon Echo is powered by AI bot Alexa and has been the most popular example using machine learning. It was one of the biggest challenges for the company in the beginning, as it was the company’s first voice-powered virtual assistant, ideal to fit on a countertop.

The Alexa was integrated with personalized product recommendations, Amazon Music and Prime Video. A number of companies have already added value to the customer’s life through Alexa.

Amazon’s Recommendation Engine powered by AI generates 35% of the company’s revenue. Data collected from the customer purchases and preferences, search history and items that are frequently bought, Amazon can create a list of customized list of products that customers are likely to buy.

Data extracted from the three areas of the company work collaboratively to develop a solid customer experience. For instance, the customer can visit Amazon Go store to purchase utensils, ask Alexa to look up for delicious breakfast recipe and product recommendation engine can conclude that the customer might be interested in purchasing non-stick fry pan.

Amazon has gone through a long journey since its inception in Machine Learning and AI. The company through Amazon Web Services sells its machine learning approach to clients like NFL and NASA. With the help of AI advancement and applications in other areas, it offers customized AI solution to big and small businesses.

In short, the companies who are looking to stay competitive and successful in the coming years must adopt an approach like the Flywheel.

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