In an illuminating keynote address at the Consumer Electronics Show (CES) in Las Vegas, Walmart’s President and CEO, Doug McMillon, along with other Walmart executives, provided insights into the retail giant’s strategic integration of cutting-edge technologies. The focus was on integrating advancements such as AI-driven search and replenishment, augmented reality (AR), drones, generative AI, and various other AI technologies to enhance the overall shopping experience for customers.
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Walmart’s Past Applications of AI
Walmart’s quest to revolutionise the shopping experience has led to a series of innovative AI-powered applications in the past. In 2019, the retail giant inaugurated its Intelligent Retail Lab (IRL) in a New York store, using AI to monitor inventory levels, product freshness, and customer traffic, aimed at making shopping more efficient and convenient, with a particular focus on AI-driven search and replenishment.
Building on its AI initiatives, Walmart introduced the Jetblack chatbot in 2020, allowing customers to shop through text messages while receiving personalised recommendations and delivery options. The company’s commitment to enhancing its e-commerce platform became evident in 2021 when it partnered with OpenAI to use the GPT-3 language model for generating product descriptions, reviews, and other content, further integrating AI-driven search and replenishment features.
Revolutionising Search and Generative AI
Among the major announcements was Walmart’s introduction of a groundbreaking AI-driven search feature on iOS. This innovative search tool, part of the AI-driven search and replenishment initiative, enables customers to explore products based on specific use cases rather than relying on traditional searches using product or brand names. For instance, users can inquire about items needed for a football watch part, prompting the system to generate relevant results across categories. This move puts Walmart in direct competition with Google’s Search Generative Experience (SGE), offering enhanced search capabilities that include product recommendations, reviews, prices and images.
Walmart is venturing into AI-powered replenishment solutions with Walmart InHome Replenishment as part of its broader AI-driven search and replenishment strategy. This initiative combines AI and existing replenishment expertise to automate online shopping carts for customers, ensuring the delivery of regularly ordered items to their homes. The InHome delivery service, facilitated by smart lock technology, aims to streamline the process without requiring a subscription. Customers have the flexibility to modify their baskets, adapting to changing needs over time.
The retail giant also showcased an AI shopping assistant during CES, allowing customers to interact with a chatbot as they shop. This AI shopping assistant, integral to the AI-driven search and replenishment framework, provides personalised product suggestions and recommendations based on customer inquiries. Walmart had previously teased a generative AI-powered search feature, and it is now officially rolling out on mobile devices, starting with iOS.
Introducing “Shop with Friends” AR Shopping
Walmart showcased a groundbreaking AR shopping tool, “Shop with Friends,” at CES, exemplifying its commitment to AI-driven search and replenishment. This cutting-edge platform empowers customers to create virtual outfits and seamlessly share them with friends, who can provide real-time feedback. The integration of Walmart AI-powered virtual try-on technology, unveiled last year, with social features creates an immersive and interactive shopping experience that aligns with the vision of adaptive retail.
In addressing these transformative innovations, Doug McMillon, Walmart’s President and CEO, coined the term “adaptive retail”, highlighting a shift towards a more personalised and flexible retail landscape. Suresh Kumar, the Global Chief Technology Officer and Chief Development Officer at Walmart, further emphasised this concept, highlighting how adaptive retail seamlessly unifies the strengths of e-commerce and in-store shopping. The overarching objective revolves around prioritising people, ensuring a holistic and customer-centric retail experience driven by AI innovation.
Expanding AI Applications Across Walmart’s Ecosystem
Walmart Sam’s Club is implementing AI and computer vision-powered technology, part of the broader AI-driven search and replenishment initiatives, to address the issue of waiting in line for receipt verification when exiting the store. This pilot program, running in 10 locations, utilises computer vision to capture images of customers’ carts, and AI speeds up the process of matching cart items to sales. The company plans to expand this technology to nearly 600 clubs by year-end.
Walmart’s generative AI tool for store associates, known as My Assistant, is set to expand its reach to 11 countries outside the U.S. in 2024. Currently available in several countries, including Canada, Mexico, Chile, Costa Rica, El Salvador, Honduras, Guatemala, and Nicaragua, My Assistant, as part of the comprehensive AI-driven search and replenishment strategy, assists employees with tasks such as writing, summarising large documents, and providing creative thought starters.
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Addressing AI’s Impact on Jobs
Doug McMillon addressed the impact of AI on employment, emphasising Walmart’s commitment to using technology to serve people. While acknowledging that certain jobs may be eliminated due to AI implementation, McMillon stressed that the company is actively designing new roles that are more enjoyable, satisfying, and often offer higher pay. Investments are being made to support associates in transitioning to this evolving work landscape.
Microsoft Unveils Groundbreaking Collaboration at CES Keynote
During the CES keynote, Doug McMillon welcomed Microsoft CEO Satya Nadella to the stage, shedding light on Walmart’s innovative approach to technology. Their collaboration with Microsoft involves the integration of AI, with large language models from Azure OpenAI complementing Walmart’s retail-specific models. Together, they aim to usher in a new era of AI-driven search and replenishment capabilities.
Nadella delved into the transformative potential of generative AI, showcasing its applications in coding, productivity apps, healthcare, education, and more. He emphasised the need for thoughtful consideration of both the opportunities and potential unintended consequences associated with these technological advancements.
Elevating Customer Satisfaction with Expansive Drone Delivery Rollout in Dallas-Ft. Worth Metro
Moving beyond AI, Walmart is actively exploring additional technological frontiers to enhance customer experience, particularly in the case of expedited deliveries. The company unveiled ambitious plans to expand its drone delivery service in the Dallas-Ft. Worth metro, including 1.8 million households or 75% of the metroplex area.
This strategic move, powered by innovative technologies from Wing and Zipline, aims to provide rapid deliveries within a remarkable 30-minute timeframe. Walmart highlighted that a substantial 75% of the diverse items stocked in a Walmart Supercenter meet the specific size and weight requirements essential for efficient drone delivery.