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

Amazon.com Inc.'s (NASDAQ:AMZN) "Just Walk Out" technology was reportedly powered by 1,000 contractors in India acting as virtual cashiers.

What Happened: Amazon’s “Just Walk Out” technology, which used cameras and sensors to track customer purchases, was powered by humans and not artificial intelligence as was previously thought, reported The Information.

This comes amid news that the company is shifting its focus to "Dash Carts" and traditional self-checkout counters.

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The Dash Carts are equipped with a scanner and screen, allowing customers to check out as they shop. This change is being implemented in existing Amazon Fresh stores.

Despite the initial excitement around the Just Walk Out technology, it faced several challenges. The system, which was not entirely automated, relied on over 1,000 off-site contractors in India to monitor and label videos for accurate checkouts.

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Why It Matters: This decision comes after Amazon’s Just Walk Out technology entered the clothing retail sector in 2023, indicating the company’s ambitious plans to expand its cashier-less shopping technology beyond convenience and grocery stores.

The "Just Walk Out" technology also missed Amazon's targets, with 7 out of 10 sales requiring human intervention. This proved more expensive than just allowing users to scan and self-checkout, and that is reflected in Amazon's decision.

Update: The story has been updated with the following comment from Amazon:

“The characterization that Just Walk Out technology relies on human reviewers is inaccurate. The primary role of our Machine Learning data associates is to annotate video images, which is necessary for continuously improving the underlying machine learning model powering Just Walk Out technology. Associates may also validate a small minority of shopping visits where our computer vision technology cannot determine with complete confidence an individual's purchases. Just Walk Out technology has continued to scale while reducing the number of human reviews year-over-year.”

Price Action: Amazon’s stock closed 0.15% lower on Tuesday at $180.69, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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