What major change did Walmart just announce? Money-saving details revealed

Walmart is stepping into a new level of digital innovation with what it calls a transformational investment in technology, one that could change the way millions shop and fulfill their orders, and maybe even save them some money.

As the battle among major retailers continues, Walmart is increasing its use of artificial intelligence on both its mobile app and in external platforms, making AI a core component in creating affordability, convenience, and an easier shopping experience.

Walmart added its in-app AI assistant (dubbed Sparky) this year to help guide customers toward better buying choices. Designed to operate as a conversational shopping partner, Sparky distills product reviews, compares items, and highlights relevant alternatives.

What does an AI-first future look like at the world’s largest retailer?@Walmart CTO Suresh Kumar joins @kaliouby to show how AI is reshaping shopping, operations, and Walmart’s competitive edge.

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The tool is designed to reduce the amount of time customers spend going through listings and allow them to find better deals.

Walmart also has started testing “Sponsored Prompts,” which match AI-generated responses with click to buy ads, combining product discovery with targeted advertising.

Apart from internal AI tech, Walmart has collaborated with OpenAI to hook its product catalogue up to ChatGPT. Users can discover and buy Walmart products right within the chatbot, thanks to ChatGPT’s Instant Checkout feature.

The referral traffic from ChatGPT to Walmart’s online store grew substantially this year, according to internet data service SimilarWeb analytics, indicating that conversational AI could emerge as a new consumption route.

Walmart is calling these shifts a move from traditional search-based shopping to “personalized, contextual and interactive shopping experiences” in which AI, not search, powers the customer journey by anticipating what customers need rather than reacting to their inquiries.

Walmart’s broader ambitions and competitions as CEO Doug McMillon talks about the inclusion of AI

Walmart’s rivals are taking a similar route. Amazon’s conversational AI assistant “Rufus” can now respond to your needs by simply asking for a recommendation, tracking prices of products on its website and helping you establish your own price threshold.

Meanwhile, Target has begun beta testing for its own ChatGPT-enabled shopping app that makes personalized recommendations considering budget and occasion, you can even build themed baskets and check out all in one go.

Both retailers note that AI is increasingly critical when it comes to steering consumers toward cost-effective purchases, especially in high spending seasons like the holidays.

Walmart’s aims are even larger than discounts and digital convenience. AI is said to revolutionize almost every job at Walmart.

CEO Doug McMillon says Walmart’s goal is to hold its headcount roughly flat while becoming more productive through the use of robotics and other forms of automation, most notably in customer service and managing inventory both within stores as well as throughout the supply chain.

"I think no one knows how this is going to play out exactly, basically, every job gets changed. I think the best way to think about it is getting plussed up... 'How can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would’ve otherwise been?'" Doug McMillon told Associated press.

Meanwhile, Walmart has just been spreading its global footprint further.

The retailer just opened its first physical store in South Africa, which plans to sell international products and promises sixty-minute delivery as a part of Walmart’s dual commitment approach to investing in technology and traditional retail expansion.