April 20, 2024 3:54 am
Report Reveals Amazon’s ‘Just Walk Out’ Grocery Checkouts, Initially Touted as AI-Powered, Actually Depended on 1,000 People in India Acting as Virtual Cashiers

In recent news, it has been reported that Amazon.com Inc.’s AMZN “Just Walk Out” technology relied on 1,000 contractors in India who acted as virtual cashiers, rather than artificial intelligence as previously believed. The technology used cameras and sensors to track customer purchases, but it was not fully automated as initially thought.

Despite the initial excitement around the cashier-less technology, it required human intervention for 7 out of 10 sales, making it more costly than traditional self-checkout methods. As a result, Amazon is shifting its focus to “Dash Carts” and traditional self-checkout counters in existing Amazon Fresh stores. These changes are being implemented to address the challenges faced by the Just Walk Out technology and improve the efficiency of the checkout process.

This decision comes after Amazon introduced the technology to the clothing retail sector in 2023, signaling the company’s interest in expanding cashier-less shopping beyond convenience and grocery stores. However, the technology did not meet Amazon’s targets and relied heavily on human monitoring, making it less efficient and cost-effective than anticipated.

The news of this shift in focus has caused Amazon’s stock to close slightly lower on Tuesday. It serves as a reminder that innovations in retail technology are not always as seamless as they may seem and can face challenges along the way. Subscribe to the Benzinga Tech Trends newsletter for the latest developments in technology and retail.

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