A better way to put it is: “We are now sufficiently good at predicting ... We’ll just ship it to the warehouse closest to you, so in case you buy it, you get faster shipping.” To me, that's value of AI.

Hypotheticals don't have to be reasonable or realistic to serve their purpose.

The writer's purpose here was to show the difference between incremental and transformational business change, by stressing baked-in assumptions beyond their natural breakng point. In that sense they succeeded.