Investigating AI: Amazon's Business Strategies - Research Project

This research project delves into Amazon's utilization of artificial intelligence (AI), focusing on its impact on business operations and efficiency. It examines Amazon's initiatives in implementing AI technologies, particularly in its drone delivery system (Amazon Prime Air), and explores the benefits and challenges associated with using drones for product delivery. The study aims to understand how AI affects production activity at Amazon, identify gaps between AI and machine learning processes, and assess the overall influence on organizational productivity and performance. The research also considers the ethical, feasible, and attainable aspects of AI implementation in the business world, providing insights into the strategies and tools Amazon employs to leverage AI for competitive advantage. The document is contributed by a student and available on Desklib, a platform offering AI-based study tools and resources.

Business Research Project
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Table of Contents
Chapter 1: Introduction....................................................................................................................3
Chapter 2: Literature review............................................................................................................8
Chapter 3: Research Methodology................................................................................................15
Chapter 4: Timeline of Research Activities...................................................................................20
Chapter 5: Conclusion...................................................................................................................22
References List..............................................................................................................................23
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Chapter 1: Introduction
Research Topic: Artificial intelligence at Amazon
1.1 Background of the research
Artificial Intelligence is the area of computer science, which is devoted to solve cognitive
challenges generally related with human intelligence like learning, problem solving and
recognition of pattern. More than one million drones are legal in the United States. Most of these
technologies belong to people flying them for fun, but a developing number are applied
commercially. Organizations involving UPS, DHL, Google and Amazon are already discovering
ways to carry packages with drones despite of trucks (Galloway, 2017). New researches have
unfolded the fact that switching in this technology will change the process of using energies as
well as resulting environmental influences. Recently, it has been noticed that Amazon is well apt
in delivering items to some of their consumers just hours after order have been placed by using
drones. However, the online trader says that time window would reduce in size to just 30 minutes
if it could deliver packages through drones with the help of Amazon Prime Air service (Murray
et al., 2015). Though it is unclear that when will this service be launched in the market,
specifically since legal rules have yet to set up clear-cut policies around commercial drone use.
There are also various arguments regarding how this program itself would perform and in which
way it would cost consumers.
1.2 Background of the company
Amazon.com, Inc, operating its business as American electronic commerce, is based on United
States. This organization has around 566,000 employees in all their branches. The operating
income of the organization is around US$4.106 billion, total organizational assets of Amazon is
US$131.31 billion and organizational revenue is US$177.86 billion (Amazon.com, 2018). This
organization produced and provides products such as Amazon Appstore, Amazon Echo, Amazon
Kindle, Prime and others.
1.3 Research purpose
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Development of understanding and knowledge in artificial intelligence will set out all the
planning processes and will help in identifying steps for achieving intended research objective as
well as shows whether this current digital technological enhancement in the business world will
be ethical, feasible and attainable in the time scale (Cohen and Feigenbaum, 2014). This study
will also be helpful in setting out developing diffusion of artificial intelligence and digital
technologies throughout various sectors. Precisely, the main purpose of this study is to develop
an understanding regarding Amazon’s use of artificial technology for increasing efficiency rate
of their new delivery system through use of drones. Moreover, one more purpose of this study is
to unfold positive and negative effects of artificial technologies in the organizational productivity
and performance rate across the globe. Concisely, this study will be designed in a way that could
explain policies and tools implemented by Amazon in their current Amazon Prime Air project
and usage of artificial intelligence.
1.4 Aims and objectives
Aim of this study is listed below.
 To understand the manner in which artificial intelligence, a category of digital technology
is affecting the production activity at Amazon
Objectives of this study are listed below.
 To develop knowledge about the application of artificial technology within business
operations of Amazon
 To unfold benefits and challenges of using drones in the product delivery process
 To identify gaps between artificial intelligence and machine learning processes in
delivering productivity of organizations
1.5 Rationale of the research
What is the issue?
The current issue that has been highlighted in this study is centred round digital technology and
usage of artificial intelligence. Recently, it has been noticed that various organizations are
concentrating on developing organizational capability to acquire and implement artificial
intelligence to enhance their productivity level since technological development becomes one of
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the main component and strength to compete against the ever-changing market competition
(Cohen and Feigenbaum, 2014). In this regard, it can be underlined that Amazon has decided on
using drone facilities to make their product delivery system mote timely and efficient as well as
developing artificial intelligence capabilities.
Why it is an issue?
Developing organizational efficiency level is an issue because; many organizations are
indulging on “new economy” that is driven by digital technologies. Technological enhancement
has been an important criterion for several leading organizations to maintain and manage
customer satisfaction level, problem-solving process and IT management (Schwalbe, 2015). All
these factors contribute to the overall operational management process of a leading organization.
For these reasons, implementation and development of artificial intelligence is considered as a
significant issue.
Current position of the issue
Current research in the field of computer science and benefits of artificial intelligence unfolds the
fact that across the glove computer technologies have been developed promisingly throughout
the previous years. Recent review on his field has unfold the fact that developing computer
technologies and artificial technologies in the manufacturing, supply chain and product delivery
operations can help in developing overall organizational efficiency level (Dodgson, 2018). For
example, Amazon has decided to implement drone services for delivering goods to people within
the right time.
What light will these findings shed on this study?
All these research will be necessary in developing understanding and knowledge of artificial
intelligence and how this technology can be helpful in developing organizational efficiency level
standing against the changing business environment. Additionally, findings will develop
knowledge regarding Amzon’s current technology usage to achieve competitive advantage.
1.6 Research questions
Research questions are listed below.
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 What are the initiatives taken by Amazon to implement artificial technologies within its
business operations?
 What are the major benefits and difficulties of using drones in the product delivery
system?
 How gap between artificial intelligence and machine learning process will influence the
productivity and performance level of organizations.
 What are the current steps and machineries used by Amazon to develop organizational
capability to channelize artificial intelligence?
Structure of the Dissertation
The research work will be following a particular structure. The entire research work will be
executed in certain chapters that are presented below:
Figure 1: Structure of the Dissertation
(Source: Created by Author)
Chapter 1:
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In the first chapter of the research work, the researcher will focus on developing a
background of the study and rationale of conducting the research. In addition to this, the key
terms pertinent to the study will be underpinned in this chapter. Furthermore, the significance
of the study will also be highlighted in the study.
Chapter 2:
The second chapter of the study will provide a comprehensive and coherent discussion on the
existing literary works. The theories, models and concepts of different authors will be
deduced in this chapter based on certain themes.
Chapter 3:
This chapter of the exploration project will provide a detailed insight on the entire
methodology of the study. The paradigm approaches and design of the study is elaborated in
the chapter. Along with this, the data collection and analysis technique is also provided in the
chapter. The sampling size and techniques is also provided in this chapter.
Chapter 4:
The fourth chapter of the study will provide a detailed analysis of the primary and secondary
data using quantitative and qualitative approaches respectively.
Chapter 5:
Based on the overall discussion, this last chapter of the study will provide a detailed personal
conclusion and recommendation.
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Chapter 2: Literature review
2.1 Concept of digital technology and Artificial Intelligence
The perspective of Fitzgerald et al., (2014) says that Digital technology is the combination
different types of electronic equipments and applications. The technology uses th3e information
in the form of binary codes 1’s and 0’s. The overall process of digital technology is broadly
divided into two base processes. At first, the digitization of the information is done where the
analog data recorded from the external source is converted into digits as 1 and 0. After the
digitization of the information, these information are then carried or rather transferred with the so
that those converted data have a practical use. The devices that process this information are
personal computers, calculators, traffic lights controllers, mobile phones and others. The digital
devices are responsible to convert the analog information into digital codes. These devices use
new and upgraded algorithms or applications to solve different and complex problems. The
transfer of digital information is done with the help of satellites and fiber optics. This type of
communication is known as Digital Communication (Stüber et al., 2017). Since there is a
presence of both digital and analog data, the conversion between them is done with the help of
MODEM (Babbitt et al., 2017).
Russell et al., (2016) in his studies said that Artificial Intelligence (AI) is actually advancement
in computer science that enhanced the manufacturing of new and innovative machines that
operates just as compared to humans. After the advent of Artificial Intelligence, it has become
the essential part in many of the technical as well as marketing industries. It is basically the
branch of computer science that deals with working of intelligent machines. The activities that
are related with Artificial Intelligence generally include speech recognition (Graves et al.,2014),
learning, planning and problem solving. The working of the machines to learn and react depends
upon the amount of information available in the digital world. The particular term of computer
science was first developed by John McCarthy in the year 1956 (McCarthy, 2014). The
technology uses tools and resources from computer science, psychology, philosophy,
neuroscience, cognitive science and others. The main concept of the technology is that it is
capable of performing difficult and complex task on its own. The major differences between the
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brains and computers are literally described by the help of artificial intelligence. With the course
of time, this new technology in the digital world is learning new techniques including perception,
imagery, thinking and problem solving.
2.2 Influence of digital technology on business activity
Digital technology and online businesses are based on information technology that poses as a
new shape of economy in the ever changing business environment. Development in the digital
technologies in changing business environment is valued as something which is expected.
Innovations in the sector of information technology, central processing unit, telecommunications
as well as transport systems have deliberately contributed to the connection between markets all
around the world and an unparalleled boom in the global movement of products, capital,
services, people, business ideas and cultural values (Pollitt and Bouckaert, 2017). According to
Swan (2015), in such situations, the economy is reflected to as buoyant, information, network,
digital tools, E-economy and others all of which, in the judgment of many researchers, generates
the term “new economy”.
n the other hand, as opined by Leister (2015), level of technological development, which
characterize current international economy and the ever-enhancing utilization of Information
technology have led to alterations in the financial environment, compelling the business systems
to carry out changes. All the fundamental forms of organizations take on these new shapes as
well as forms, whereas a huge part of the business is channelized to the internet, in which it
continues being performed, but electronically, applying all the positive parts offered by the
network as well as new web technologies. Laudon and Laudon (2016), have stated that operating
systems have taken benefits of new features like as continuity in the application of organizational
processes and totaling value to services and products provided, thus offering developed
productivity, making new organizational values and execution of certain positions in the market.
Digital technology and economy in the new and ever-changing business environment has four
core influences on current international economy. This makes a brand new content or apply-
value of services and product, which did not preset before.
Moreover, concept of the digital economy mergers investment and technological improvement,
on one side and financial development on the other. Charniak et al. (2014) have confirmed that
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relationship among the amount, strength and dynamics in which an individual influences or
affects the other should be identified that actually reflects the maximum difficulty for those
included in the financial development projections. Current information and communication
technologies are continuously developing and their implementation in several industries has left
a serious mark on modern business in current history. As per the opinion of Pierson and
Bauwens (2015), continuous digital development contributes to the meeting of fundamental
forms of modern business operations, on the other side, and IT, on the other hand. Several
instances have discussed the fact that day to day, more and more of applicants in the business
world are trying to achieve benefits of digital technologies. Various businesses are considered to
have lack of infrastructure and knowledge in digital technologies that limit their progress in the
road of modern business operations. According to Pierson and Bauwens (2015), the digital
economy that involves digital capital and arts, portrays more than 22% of the international
modern business. Therefore, this is evident that digital technologies and operations on modern
organizational operations have not been adequately utilized.
Currently, there has been remarkable development of the number of various kinds of virtual jobs
in emerged countries. For example, the United States organization “CBI / Pertemps” has
proposed that around 46% of the workers provide a virtual employment since 2008, whereas
only about 14% of recruiters did so in previous two years. On the other hand, Bosnia and
Herzegovina and its organizational business atmosphere should follow up this digital technology
related trend, try in opening virtual job opportunities, as this will offer great advantage, and
contribute to the current business functions. Benefits of digital technology and virtual job
opportunities have advantages of twofold. These are speaking on behalf of an individual
employee, job establishment and security of a proper equilibrium among professional and private
life, whereas the market and its financial system would provide advantage the most from develop
of productivity level at lower expenditure (Cherry, 2015). On the other hand, all the virtual
workplaces have its individual benefits and challenges that would be described in a more
effective and dedicated way of this topic. All the virtual tasks and their execution is a kind of
solution arranged in such as process where some or all workers work outside of the traditional
office applying the Information Technology package of IT tools that enables them to effectively
finish their individual work compulsion.
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Olsen (2016) has stated that both workers and the recruiters benefit from this type of work
method. One of the most common professional fields is technicians, sales clerk, administrative
workers, managers and clerks. On one hand, there are highly experienced, skilled and full-time
employed individuals who do their tasks from home at the time of regular working hours. On the
other side, Olsen (2016) has said that there are many part-time employees with effective
experience in professional field that by applying a computer and information technologies tools.
They perform administrative and specialized works from home, outside the domain of normal
working time.
2.3 Difference between Artificial Intelligence and Machine Learning
Comparing between the studies of Voyant and Russell, the overview of the distinction between
artificial intelligence and machine learning can be discussed. The artificial intelligence
technology is basically implemented in the system while machine learning is one of the
applications of artificial intelligence. The artificial intelligence is the study in which the
computers are trained so that it is able to do things in the similar way the humans do in present.
While machine learning is the ability of the digital machines to learn things from the information
available in the digital world and the ability of improvement in its performance is increased.
The term artificial intelligence is defined as the acquisition of knowledge and information along
with the ability to acquire and apply that information at the same time while the term machine
learning is defined as only the acquisition of any knowledge or skill. The artificial intelligence
only deals with the success and not with the increase in accuracy whereas machine learning is the
application of artificial intelligence is associated only with the growth of accuracy in its
performance while not giving too much importance to success. The practical usage of this
artificial intelligence is associated with smart work while the algorithm of machine learning its
operation includes simple transfer of data between machine and learning from the data.
The goal of artificial intelligence is to stimulate the intelligence present in the nature so that it is
able to solve complex problems whereas the goal of the machine learning is to learn from the
data depending on the certain task so that the performance of the machine associated with
machine is maximized. Artificial Intelligence is responsible with decision making while machine
learning is the ability of the machine to learn new things. Artificial Intelligence develops the
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machines and systems to mimic the human behavior on different types of complex circumstances
while machine learning involves the creation of self-learning algorithms. The significance of
Artificial Intelligence is associated with the evaluation of optimal solutions while Machine
learning goes only for those solutions that are associated with learning and implementation, it
does not judge whether the situations are optimal or not. Some of the applications of machine
learning is that its concepts are majorly used in personal assistants such as Siri, Alexa and
pothers while Artificial Intelligence is associated with the creation and implementation of these
personal assistants on systems such as computers, Smartphone and tablets. Machine learning
help in future predictions while computing within the complex digital scenarios such as traffic
predictions and online transportation networks while Artificial Intelligence is associated with the
overall process of these applications. Machine learning is used in day to day activities while
Artificial Intelligence is not regularly used in day to day activities (Witten, et al.,2014 ). Overall,
the distinctions between the two concepts of Artificial Intelligence and Machine learning is
defined in the digital world that machine learning is the application of artificial intelligence and
its governance is done by artificial intelligence itself while artificial intelligence is the mimic of
humans by the machines that uses continuous learning of data by the machines and systems.
Thus, it is stated that both of them are in synchronization with each other and both of them will
fail if any one of them fails in functioning.
2.4 Application of Artificial Intelligence in digital technology
In the recent times, Artificial Intelligence has great significance in this digital world. One of the
most significant applications of Artificial Intelligence is that it widely used in speech
recognition. Since 1990, the concept of Artificial Intelligence is being used in recognition of
speech and the possible ways of the operations is keeping on improving. Another important
application of Artificial Intelligence is that it is widely used in Robotics (Corke, 2017). With the
concepts of Artificial Intelligence certain designs of robots are created that has the ability to
localize, map, plan motion, move, navigate and manipulation of information. The robots that are
manufactured with the help of artificial intelligence are able to perform in the physical world.
These robots have been widely manufactured with the help of Artificial Intelligence and their
presence in seen in the industry in the production functions, hospitals in surgery, toys, drones and
servants in houses and office cabins.
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