Walmart is Enhancing Customer Experience with New AI Shopping Tools.

AI-Powered Innovations for New Year's Shopping

Walmart (WMT) has introduced new AI-powered shopping tools in its app. These innovations aim to enhance the shopping experience even further ahead of the holiday season. Walmart will offer AI-generated shopping lists for events, suggestions for finding savings within the store, and improved navigation features showing the exact location of products in the store.

Walmart U.S. Executive Director Tracy Poulliot stated, "We are leveraging the capabilities of AI to make the experience in retail more immersive." Poulliot also noted that they are making it easier for customers to access the desired products. "We are ensuring that customers can reach products without having to wander the aisles," she said.

Walmart also noted that consumers shopping through the app spend an average of 25% more. David Guggina, Walmart U.S. Executive Vice President and E-Commerce Chief, expressed that the new features "eased product discovery and purchasing during the busiest period."

This announcement came immediately after a partnership agreement with OpenAI (OPAI.PVT). OpenAI's ChatGPT service will be integrated into the Walmart website, enabling purchases of products through that platform.

Walmart's new AI chatbot, Sparky, will receive updates in a very short time. Doug McMillon, the CEO, stated, "Sparky will gain more capabilities over time," adding that the chatbot could take on tasks like planning birthday parties.

Hari Vasudev, Walmart U.S. Chief Technology Officer, referred to the "agency" nature of chatbots, emphasizing that customers could set specific goals, and Sparky could gather the necessary information to achieve them. This will allow Walmart customers to specify event themes, the number of attendees, and their budgets.

Julia Wilson from KPMG U.S. stated that AI has become an assistant this holiday season, especially among Gen Z consumers. Mary Hines Droesch from Bank of America noted that half of the consumers will use AI for holiday shopping this year.

Droesch mentioned that 28% of consumers are comparing prices or deals, 23% are getting gift ideas or inspiration, and 19% are tracking their spending. She predicts that this rate will increase in the coming years.

Droesch concluded, "As we become more accustomed to using these tools, we will see growth. We will continue to monitor the adoption and growth of this new technology."

Walmart's announcement comes at a time when the U.S. e-commerce business has grown by 26%, and it has become profitable in the first quarter of the current fiscal year.