CNBC’s Kate Rooney joins 'Money Movers' to discuss Amazon looking to robotics to shrink logistics costs and boost margins.

Seattle

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Amazon has announced updates to its AI and robotics systems, targeting cost reduction and improved efficiency in its logistics operations. The company is focusing on software enhancements for its robotic fleet, which are designed to automate warehouse tasks and speed up deliveries. These efforts are expected to help Amazon maintain competitive operating margins, with analysts suggesting potential increases if the AI initiatives are successful.

Industry experts highlight that the primary value of Amazon's AI investments currently lies in fulfillment center robots, rather than consumer-facing humanoid robots. The company’s approach is seen as a way to optimize its existing business model, particularly in response to rising logistics costs and customer demand for faster deliveries.

Amazon using AI to revolutionize robotics

Amazon's robotic strategy isn't focused this week as they announce new AI and robotic fleet updates designed to help the company lower costs. Kate Rooney has more on these savings. Wait, Kate, are these robot factory workers? I thought they were going to be, you know, like the ones that Tesla's working on that are going to do my dishes or whatever. Oh, the humanoids. And we'll talk about that, Kelly. I think that's what we're all focused on. But these were more of software updates this week. But if you think about sort of the start of this big tech AI race, it's only been a couple of years, but Amazon CEO Andy Jassy has made the case repeatedly that this technology is going to help the business internally. He said at certain points, you know, they're not just competing because it's the newest buzzword and then it's cool, as he's described it. We are seeing more proof of that. At this point, AI is emerging as a way for Amazon to keep costs down within the e-commerce business, in part by using robots. Some folks call this physical AI, especially in Silicon Valley. They're really trying to streamline the supply chain as well. Amazon right now needs this more than ever with the threat of tariffs, shares negative on the year and really have been kind of in the middle of the mag seven pack this week. Amazon did roll out some incremental AI updates. One model is meant to speed up delivery. Another is to upgrade its fleet of robots on the software side, which in turn would help automate warehouses and keep costs down. The key for investors here is margins. So right now, Amazon's business, it's roughly 11% operating margins. Gene Munster over at Deepwater thinks that could go to 15% if all of these AI efforts pay off. He compared it to Tesla's strategy and thinks the bulk of the value right now for Amazon and AI, it's in fulfillment center robots. Morgan Stanley also weighing in today, calling Amazon an underappreciated gen AI winner, citing recent investments in automating $200 billion in logistics costs. Yeah. And I don't mean to be glib because if they can use robotics or AI to actually speed up the delivery process, that is a huge deal for the company. Definitely. It's so interesting you brought up humanoids too. I mean, those are kind of the exciting part, but I would say 99% of this at this point in terms of robotics are these robotic arms. You've got these things that kind of look like these Roombas that go around the factory space, but they can lower costs overall and also make delivery faster. There's a flywheel effect with prime memberships. People are demanding things at their doorstep much faster. That's going to help them maintain that speed up delivery, keep prime members engaged. And it's kind of fits in the big picture. It reminds me of, I mean, both Amazon and Meta are basically using the technology to do what they already do better as opposed to pivoting into kind of brand new businesses, at least for now. And Google. Yeah. Yeah. Kate, thanks very much. Kate Rooney.

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

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Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Washington

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Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

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For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Jerusalem

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

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Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

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Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

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A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

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The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

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The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

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Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

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Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

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Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

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A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

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Abnormally high temperatures combined with heat and drought have fuelled destructive wildfires in parts of Europe, forcing thousands to be evacuated.

Athens

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Michigan officials say they will file terrorism charges and 11 charges of assault with intent to murder against the man who allegedly carried out a knife attack at a Walmart on Saturday. Lana Zak reports.

Garfield Township

Suspect in Michigan stabbing rampage to face terrorism charges

FAA investigators are in Denver after passengers and crew aboard an American Airlines flight were forced to evacuate when a tire blew during takeoff and the plane's rapid deceleration caused a brake fire, the airline said. Elise Preston reports.

Denver

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President Trump announced Sunday that the U.S. and European Union have come to a trade agreement after high-stakes meetings in Scotland. Weijia Jiang reports.

Edinburgh

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Israel says it will now establish secure routes through the war zone in Gaza so aid convoys won't be shot at or looted. Elizabeth Palmer reports.

Tel Aviv-Yafo

Israel says it will establish secure routes for Gaza aid

U.S. President Donald Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American president.

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Following four days of border clashes which have left over 30 people dead, the two sides have agreed to Malaysia acting as a mediator in the conflict.

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Protesters gathered in front of the U.S. consulate in Edinburgh to oppose President Trump's visit to Scotland. Mr. Trump plans to host the U.K.'s Prime Minister Keir Starmer and the President of the European Union, Ursula von der Leyen, for trade talks at his personal properties.

Demonstrators protest Trump's visit to Scotland

The Israeli military said Saturday that it will resume aid airdrops into Gaza and open humanitarian corridors for United Nations convoys amid increased international pressure and accounts of starvation-related deaths in the territory.

Amazon using AI to revolutionize robotics

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Rise of AI