Warehouses
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Amazon could save $4 billion annually by switching to robots, says Morgan Stanley
Morgan Stanley projects Amazon’s aggressive warehouse robotics expansion could generate $2-4 billion in annual savings by 2027. Amazon plans to add roughly 40 advanced robotics warehouses by 2027, aiming to automate 75% of operations. Analyst Brian Nowak cites GenAI advancements in retail, particularly robotics-driven efficiencies, as undervalued by the market. Amazon CEO Andy Jassy reports existing robotic deployments have already reduced fulfillment costs, suggesting potential for even greater savings. This automation could also significantly reduce future labor needs.
