How Walmart Uses A.I. to Make Shopping Better for its Millions of Customers

Walmart is one of the world’s largest retailers, serving millions of customers across thousands of stores globally. To oversee such a tremendous business, the retail giant has integrated Artificial Intelligence (AI) across its operations to streamline logistics, optimize processes, and improve customer experiences.

As of 2025, Walmart operates over 11,000 stores worldwide, offering a wide range of products from groceries to electronics. Walmart’s revenue for fiscal year 2024 was 648 billion US dollars, a 6 percent increase compared to the previous year.

With the arrival of e-commerce and expanded competition from online retailers, Walmart recognized the need to innovate and embrace new technologies, particularly AI, to streamline its operations, upgrade the shopping experience, and to remain ahead in the competitive market landscape.

Walmart’s strategic vision

 The strategic vision centered on transforming Walmart into a data-driven organization, leveraging AI to deliver superior customer experiences and operational efficiencies.

Doug McMillon, CEO of Walmart, emphasized the significance of this vision by saying:
“Our commitment to integrating AI into our core operations is driven by our vision to become the world’s leading data-driven retailer”.

Walmart’s CEO realized that a seed of innovation planted with right nurturing and care could grow into a robust tree providing shade, fruit, and stability for the whole ecosystem.

And in 2017, Walmart established its AI Center of Excellence to centralize AI endeavours, drive innovation, and ensure the effective implementation of AI technologies across its tremendous network.

The retail giant’s AI solution

• Customer interaction

AI has significantly improved Walmart’s customer service. The introduction of chatbots on Walmart’s website and mobile app has enhanced customer interactions. From product information to order tracking, these chatbots handle a variety of queries by providing instant responses and freeing human agents to tackle more complex issues.

• Personalized shopping experience

Walmart uses AI to personalize its customers’ shopping experiences. Through data collected from previous purchases, browsing history, and customer preferences, Walmart can detect products likely to interest individual shoppers. This personalization extends to marketing campaigns, where targeted advertisements are displayed to customers based on their shopping habits.

• Voice order

In 2019, in partnership with Google, Walmart announced the Walmart Voice Order, which simplified grocery orders using voice commands. To activate the feature, users only had to pick up their device and say, “Hey Google, talk to Walmart.”

The technology developed by both Google, and Apple suggests items with the best local price and availability.

• Inventory optimization

The company uses machine learning algorithms to predict product demand, ensuring that popular items are always in stock while minimizing overstock situations. These predictive analytics tools analyze historical sales data, seasonality, and trends to forecast inventory needs accurately.

• Pricing strategy

AI algorithms determine optimal pricing strategies by analyzing competitor prices, market trends, and customer price sensitivity.

• Supply chain management

AI has also revolutionized Walmart’s supply chain. The company uses AI-powered robots in its warehouses to automate the sorting and packing of products. These robots work alongside human employees to increase efficiency and accuracy. Additionally, AI systems optimize delivery routes for Walmart’s fleet of trucks, reducing fuel consumption and ensuring timely deliveries.

2024 Walmart’s generative AI-powered search

Walmart built an all-new generative AI-powered search function across iOS, Android, and its website. The new feature is explicitly designed to identify the context of a customer’s query and generate personalized responses. Very soon, customers will have a more interactive and conversational experience, get answers to specific questions, and receive personalized product suggestions.

For example, a person planning a birthday party for a family member who loves flowers. Instead of multiple searches for flower-themed cup-cakes, table cloth, streamers, napkins etc., the person can simply ask, “Help me plan a flower-themed party for my family member.”

Benefits and impact for Walmart

The integration of AI into Walmart’s operations has yielded significant benefits like

Better efficiency:

With automated inventory management and supply chain optimization, AI has streamlined different operational processes, further helping to reduce the time and resources required to manage inventory, fulfill orders, and handle customer service inquiries.

Greater customer satisfaction:

Personalized shopping experiences and efficient customer service has significantly increased customer satisfaction and loyalty.

Higher sales and revenue:

Targeted marketing campaigns and optimal pricing strategies have driven higher sales, deals and revenue.

Competitive advantage:

By embracing AI, Walmart has maintained its competitive edge in the retail business, effectively competing with online monsters like Amazon.

Promotes substantiality:

Walmart’s AI-driven approach plays a crucial role in managing waste. By engaging employees with data-driven insights, Walmart can avoid excess inventory and reduce the need for disposal. It strives to reduce waste and promote sustainability in its operations.

Walmart’s challenges and barriers in AI-driven approach

Despite the success, Walmart faces challenges in its AI journey. Data privacy concerns and the need for continuous technological upgrades require ongoing attention. Additionally, integrating AI with existing systems and ensuring employee adaptation to new technologies is at times complex.  There is also a need to carefully navigate the ‘creepiness’ of anticipating customer needs too accurately. The rapid technology change requires Walmart to remain agile and innovative to avoid unnecessary technological lock-ins.

However, looking ahead, Walmart plans to expand its use of AI, exploring areas like autonomous delivery vehicles and advanced robotics. The company’s commitment to innovation positions it well to navigate the evolving retail landscape and meet the changing demands of consumers.

The future in retail AI

Retail is on the brink of massive transformation propelled by AI. As per studies, by 2025, 20 percent of top global retailers will drive holistic results using distributed AI systems. Moreover, in a recent survey, 91 percent of executives voted AI to be the top game-changing retail technology in the next few years. From revolutionizing sales and marketing to optimizing supply chains and operations, AI will reshape how people will buy and sell. And brands who overlook this potential will certainly see a downfall. As Gary Hawkins, Founder and CEO of the Center for Advancing Retail & Technology, aptly puts it: “To win in retail, you have to win in tech.”

In brief

The AI revolution is already here. By following Walmart’s example, organizations can harness the power of AI to optimize operations, enhance customer experiences, and drive growth.