Amazon Just Walk Out
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August 5, 2024

Will Advanced AI Step Up Amazon’s Just Walk Out Technology?

Amazon’s Just Walk Out technology received an upgrade with advanced artificial intelligence technology promising to significantly improve accuracy, helping minimize receipt delays and increasing the ease of deployment of the technology for retailers.

In a blog entry, Jon Jenkins, VP of Just Walk Out technology in AWS Applications, said Just Walk Out tech launched in 2018 with the latest AI and machine learning available at the time to figure out: “Who took what?”

The system analyzed shopper behavior “sequentially” — their movement, their location, what they picked up, and the quantity of each item — with each action “processed one after another.”

Jenkins added, “However, in unusual or novel shopping scenarios (such as if a camera view was obscured due to bad lighting or a nearby shopper), the sequential approach could take time to determine purchases with confidence, and sometimes required manual retraining of the model.”

The new advanced AI-driven system analyzes all sensor data “simultaneously, rather than sequentially,” said Jenkins. Multiple cameras, weight sensors, and other data help the system prioritize “what’s most important to accurately determine the variety and quantity of items selected.”

He adds, “For example, a shopper might pick up and put down multiple varieties of yogurt, in different combinations, and as they are doing so, another customer might reach for the same item, or the freezer door could fog up, obscuring the cameras’ view. In complex situations like these, the new model can quickly and accurately determine the actual items taken by each shopper.”

The new multi-modal foundation model further increases accuracy by using the same transformer-based machine learning models underlying many GenAI applications online and applying them to physical stores. Transformers are a type of neural network architecture that processes sensor data into outputs, such as receipts for checkout-free shopping.

News of the upgrade reaffirmed Amazon’s commitment to scaling Just Walk Out after an early April report from The Information that the technology was being removed from Amazon Fresh stores led to questions about its viability.

Jenkins said Just Walk Out is currently available in over 170 third-party locations, including airports, stadiums, universities, and hospitals, in the U.S., UK, Australia, and Canada. Plans call for more than doubling the number of third-party stores using the technology this year. Some Fresh stores in the UK and Amazon Go convenience stores also use the tech. Jenkins said, “As we scale, the system will continue to learn from everyday shopping scenarios and raise the bar for accuracy and convenience, delivering the benefits of AI to retailers and customers around the world.”

The Information report found that despite its initial portrayal as a fully automated solution, it heavily relied on human reviewers, often leading to delayed receipts for customers. Critics of Just Walk Out technology in the past have questioned the costs and structural challenges related to installing and maintaining video cameras and other hardware in store ceilings.

In a follow-up interview at the time with Sucharita Kodali, VP and principal analyst at Forrester, Jenkins said the shift at Fresh was largely due to strong shopper appeal for its Dash Cart smart carts. He said The Information’s finding that 1,000 people in India were watching and labeling videos to manually label transactions had “no factual basis” but noted that the technology is working better at small-format stores, especially where planograms were largely identical and little to no human intervention is required.

Kodali wrote, “This recent news confirms the concern people have had all along with making the technology cost-effective in large, low-margin environments like grocery stores. It seems to have better success in high-margin, small formats.”

Discussion Questions

Does being able to analyze in-store shopper behavior data simultaneously rather than in a linear sequence appear to represent a breakthrough for Just Walk Out technology?

Does it make more sense that the technology may prove more viable for smaller than larger locations?

What questions do you still have about Just Walk Out’s scalability?

Poll

27 Comments
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Neil Saunders
Neil Saunders

I am sure AI will help improve accuracy. However, does it reduce the capital cost of the kit? Does it transform the economics of the store? I think the answer to both of these questions is no. As such, Just Walk Out will remain an interesting but relatively niche technology. And importantly, this technology isn’t solving a customer problem. Neither is it providing a compelling reason for consumers to come to store, which is something Amazon desperately needs to work on in terms of its own grocery formats. 

Paula Rosenblum
Famed Member
Reply to  Neil Saunders

But if Amazon gets other retailers hyped up on this technology it will prove a lovely distraction while it continues to build its logistics fleet (that part is a joke)

Gail Rodwell-Simon
Gail Rodwell-Simon
Active Member
Reply to  Neil Saunders

Great questions Neil and I agree with your answer. While the technology is super interesting, there continues to be risk of friction on the back end if customers are having to resolve billing issues or if the stores have escalating shrink from items missed by the sensors.

David Biernbaum

Advanced AI will improve Amazon’s Just Walk Out technology but I have strong doubts that it will make a big impact on the customer experience. Time will tell, of course.
Amazon still is challenged to manufacture a lure to attract and build its customer base. Advanced AI isn’t it, at least not yet. I doubt that it will carry enough point of difference or uniqueness to accomplish that. – Db

Last edited 1 year ago by David Biernbaum
Craig Sundstrom
Craig Sundstrom

I think the Poll may have focused on the wrong part of the <<high margin/low volume>> issue: i.e. it’s the first part of it, not the last, that insures success.
Today’s piece was all very nice, but the JWO doubters focus much of their concern on shrinkage issues, which don’t manifest themselves thru (often tedious) discussions of how the tech is supposed to work, but rather thru reports on how it breaks down; in short: I’d rather see, not a pic of how people enter the store, but how they exit.

Bob Amster
Noble Member

That last sentence is so funny because it’s so true. The concept ends in “Out” but everyone photographs the “In.” Hillarious!

Paula Rosenblum
Famed Member

More to it than that. People keep forgetting this equip,met has to be maintained. The store is not a computer friendly environment

Frank Margolis
Frank Margolis

The successful commercialization of a ‘just walk out’ solution depends on 3 things not readily available to most retailers today: cheap IoT technology that can be repurposed for multiple use cases, non-GPU based edge-computing devices, and non-weight mat based inventory tracking systems. I’d estimate at least 10 years before this model becomes ROI-positive.

Boran Cakir
Boran Cakir
Member
Reply to  Frank Margolis

Agreed on all three points. In addition, integrating this technology into retailers’ existing tech ecosystems is a key challenge, and given that ROI is far from being positive, retailers will focus on other areas of operations for their tech roadmap.

Paula Rosenblum

You’re kidding right? We’re locking up cabinets to reduce theft, but we’re gonna intersperse that with “just walk out?” C’mon. Seriously.

If you’ve ever been a practitioner, you know how challenging it can be when a piece of In-store equipment goes down. This is worse if it’s a small store.

I’m vaguely speechless. Pick your poison. You can’t have it both ways. Between those two choices, I like neither. I’d just like to see trained and helpful employees empowered with technology. Not locks and keys and not being computer maintenance personnel.

seriously. Enough.

Bob Amster
Noble Member

You are always a sobering thinker, Debbie Downer. I am still LOL.

Paula Rosenblum
Famed Member
Reply to  Bob Amster

Just Debbie the realist

Lisa Goller
Lisa Goller
Noble Member

Retail bifurcation: JWO seems designed for the upscale shopper (who can afford to travel, get tickets to the game, buy from Whole Foods …).

Brad Halverson
Brad Halverson

The information we’ve learned here in Seattle is the smaller formats with higher volume are actually doing very well in terms of cost/investment outlay against sales and profitability performance. And that Amazon’s found its scalable sweet spot. But it’s not clear which of the small venues are best, i.e. – stadiums versus airports or other public venues.

Adding AI to the mix to JWO will only speed things up – helping with assumptions for improved merchandising and pricing, but also building confidence in the balance tally/receipt as the customer exits. If it speeds things up for customers, it will continue to be received well, and do well.

Last edited 1 year ago by Brad Halverson
Shep Hyken

I’ve always told the “naysayers” that walk-out technology will improve to a point where it confidently works. It also helps with inventory management, buyer behavior (based on location, demographics, etc.), and more. All of this means a better-run store and a more convenient experience for customers.

Gene Detroyer
Famed Member
Reply to  Shep Hyken

Exactly, Shep. Like all technology-based systems, installing and operating will become Cheaper and cheaper. Technology is improving at an ever-faster rate. That is not hyperbole. That is reality.

Last edited 1 year ago by Gene Detroyer
Bob Amster
Noble Member
Reply to  Gene Detroyer

But, at your age and mine, will we live to see that in this case…?

Gene Detroyer
Famed Member
Reply to  Bob Amster

I don’t know. I am sure I didn’t even imagine today’s technology the first time I got old.

Brian Numainville

Advanced AI will continuously improve accuracy of systems like this as the technology gets more powerful over time. But, if the cost doesn’t decrease, implementation may be slow and selective.

Bob Amster
Noble Member

And that, is my point as well.

Gary Sankary
Gary Sankary

I’m guessing the Loss Prevention SVP was refilling their coffee when this decision was made. We’ll see what happens. To echo my friend Paula’s comments below- we are locking stuff up behind plated glass on one hand and letting people bypass the checkout with the other. I like to use the quote from Jurassic Park: “Everyone asks ‘can we’, no asks ‘should we.” This feels like one of those situations.

Bob Amster

At best, AI will help to shorten the long it will take for the Just-Wal-Out concept to work. Just-Walk-Out is an ambitious, albeit desired objective. Today, it is not 100% accurate and capital intensive. It will take time – if it ever happens – implement en masse at affordable cost.

Melissa Minkow

I’ll continue to say that though I’m in the minority, I’m a fan of JWO technology. Any improvements made are a positive in my eyes. I’m just waiting for adoption to actually happen.

Gene Detroyer
Famed Member
Reply to  Melissa Minkow

I agree. In five years it will be common place. In ten years, it will be every place

Arnjah Dillard
Arnjah Dillard

The shift to analyzing shopper behavior simultaneously rather than sequentially is a big step forward for Amazon’s Just Walk Out technology. It allows the system to handle complex scenarios more smoothly, improving accuracy and speed for shoppers.
Smaller, high-margin stores seem to be the best fit for this tech, where simpler layouts make deployment easier. Larger grocery stores might still face challenges, especially in terms of cost-effectiveness.
However, questions remain about scalability. Can the technology maintain its performance in different store formats, and how will infrastructure costs impact its broader adoption? These are key factors to watch as the technology evolves.

John Hennessy

AI is so much better than when Amazon launched just walk out technology. No question this will improve order accuracy, which in turn improves the shopper experience. But is this technology for technology’s sake or a true customer value? With tap and go and mobile pay, just walk out isn’t that much faster for smaller, quick to scan orders. I anticipate the combination of improved AI and order data capture will unlock additional capabilities that benefit shoppers and users of just walk out technology.

Anil Patel
Anil Patel

While analyzing in-store shopper behavior data is an incredible step for Just Walk Out technology, it’s not a breakthrough. The technology still faces significant challenges, particularly in larger stores with complex environments. It makes sense that Just Walk Out tech is more viable for smaller locations due to easier management and fewer variables.

However, questions remain about its scalability. Can it maintain accuracy in high-traffic stores? What about the high costs of implementation and maintenance? Until these issues are resolved, I’m skeptical about its widespread success in large retail settings.

BrainTrust

"Advanced AI will continuously improve accuracy as the technology gets more powerful over time. But, if the cost doesn’t decrease, implementation may be slow and selective."
Avatar of Brian Numainville

Brian Numainville

Principal, The Feedback Group


"At best, AI will help to shorten the long time it will take for the Just-Walk-Out concept to work."
Avatar of Bob Amster

Bob Amster

Principal, Retail Technology Group


"Walk-out technology will improve to a point where it confidently works. It also helps with inventory management, buyer behavior (based on location, demographics), and more."
Avatar of Shep Hyken

Shep Hyken

Chief Amazement Officer, Shepard Presentations, LLC


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