E-commerce and cloud computing giant Amazon (NASDAQ:AMZN) will ditch its artificial intelligence (AI)-based checkout technology called “Just Walk Out” from its Fresh grocery stores, The Information reported. The technology relies on generative AI, cameras, and sensors. It was introduced to revolutionize the shopping experience by eliminating conventional checkout queues and seamlessly billing customers without the need for a cashier.
In place of “Just Walk Out,” Amazon Fresh stores will use Dash Carts, which allow customers to directly scan items with their carts while shopping. This system is operational in select Fresh stores. Dash Carts streamline the checkout process and enable shoppers to bypass interactions with cashiers. Notably, Amazon operates 44 Fresh stores across the U.S., with 27 of them featuring the “Just Walk Out” technology.
The exact reason behind Amazon’s decision to move away from this technology remains undisclosed. However, it highlights the challenges of implementing cutting-edge solutions in physical stores, particularly amidst concerns about inventory shrinkage and theft. Notably, the discount store operator Five Below (NASDAQ:FIVE) is also scaling back on self-checkout options to combat theft.
What is the Prediction for Amazon Stock?
Amazon stock has gained over 76% in one year, reflecting its efforts to offer convenience to its shoppers, improve delivery speed, reduce costs, and leverage AI. Despite a significant appreciation in AMZN stock, analysts maintain optimism regarding its prospects, citing its leadership in e-commerce and cloud computing, as well as aggressive investments in AI.
With 41 unanimous buy recommendations, Amazon stock has a Strong Buy consensus rating. Analysts’ average AMZN price target of $209.89 implies 16.16% upside potential.
