Amazon is making a major push into the pharmacy business with the launch of a same-day prescription delivery service powered by artificial intelligence and machine learning. The e-commerce giant announced on Tuesday (March 26th) that its Amazon Pharmacy division will now offer same-day delivery of medications in New York City and the greater Los Angeles area, with plans to expand to over a dozen cities across the United States by the end of 2024.

This move puts Amazon in direct competition with major pharmacy chains like Walgreens and CVS Health, which already provide nationwide same-day prescription delivery services. CVS boasts same-day delivery from all of its more than 9,000 stores across 50 states and the District of Columbia, while Walgreens has offered similar speedy delivery for nearly three years.

But Amazon believes it can gain an edge by leveraging cutting-edge technologies like generative AI and machine learning to streamline the prescription fulfillment process and get medications into patients’ hands in a matter of hours, rather than days.

“So much that happens across the country is delayed diagnosis,” said Dr. Vin Gupta, Amazon Pharmacy’s chief medical officer. “We are making that whole process of diagnosis and treatment easy. And very fast.”

To enable such rapid turnaround times, Amazon is establishing a network of “small-format facilities” stocked with the most commonly prescribed medications for acute conditions. These compact pharmacies are strategically located closer to residential areas, allowing for quicker last-mile delivery.

“For example, Amazon Pharmacy’s new small-format facility in Brooklyn carries a subset of the more than 12,000 medications available from Amazon.com, with a focus on supporting urgent-care needs,” the company explained. “The pharmacist and fulfillment team at the site can process a prescription within a matter of minutes rather than hours or days.”

But it’s not just about proximity; Amazon is also deploying AI models to streamline the prescription verification process. “When handwritten or online prescriptions come in, Amazon’s AI models undertake a series of fact-checking tasks that help ensure pharmacists receive clear and accurate information,” the company said.

To get medications into customers’ hands as quickly as possible, Amazon is exploring various delivery methods tailored to each city’s unique geography and infrastructure. In densely populated urban areas, customers may receive their prescriptions via “eco-friendly e-bikes” piloted by delivery workers. Other markets could see deliveries made by drones or all-electric Rivian vans.

“Customers in Austin, Indianapolis, Miami, Phoenix, and Seattle can already access Same-Day Delivery, while customers in College Station, Texas, can get their medications delivered in under an hour via drone,” Amazon stated.

The same-day prescription delivery service is just the latest in a series of moves by Amazon to expand its footprint in the healthcare sector. In August 2023, Blue Shield of California, a major regional health insurer, announced plans to partner with Amazon Pharmacy, Mark Cuban’s Cost Plus Drugs, and the pharmacy benefit manager Abarca to help manage prescription costs for its nearly 5 million health plan members.

Amazon is also working with partners to introduce AI-powered tools that can expedite prescription approvals and assist clinicians in ensuring patients receive the right medication at the right time and in the appropriate dosage.