In a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Walmart President and CEO Doug McMillon, alongside other executives, shared insights into how the retail powerhouse is leveraging cutting-edge technologies such as augmented reality (AR), drones, and generative artificial intelligence (AI) to elevate the shopping experience for customers.
During the event, Walmart showcased several innovative products, including two AI-driven tools designed to enhance product search and inventory replenishment, as well as a beta AR social commerce platform named “Shop with Friends.” The company also highlighted its ongoing integration of AI across various facets of its operations, including within Sam’s Club and through applications utilized by store associates.
A standout feature being launched is a generative AI search function on iOS, enabling customers to search for products based on their intended use rather than specific brands or item names. For instance, users can request search results for supplies needed for a “football watch party” instead of searching for chips, wings, or a large TV. These comprehensive search results will cover multiple categories, positioning themselves as a competitor to Google’s Search Generative Experience (SGE), which recommends products and displays relevant factors such as reviews and prices.
Ahead of CES, Walmart introduced an AI shopping assistant that interacts with customers as they shop, providing personalized product suggestions. The generative AI search function, which allows requests like “unicorn-themed birthday party,” is now being rolled out on mobile devices, starting with iOS.
Another promising application of AI is in the replenishment of frequently ordered household items. Walmart will pilot this feature with the Walmart InHome Replenishment service, utilizing AI alongside its established replenishment process to generate automated shopping carts for customers based on their regular purchases. This service will deliver items directly to customers' fridges using a smart lock system, without functioning as a subscription model. Customers will still have the flexibility to modify their carts and the service will adapt to their changing preferences.
Interestingly, Amazon has yet to harness AI for similar purposes, despite utilizing it in other areas to assist customers in finding the right products through summarized reviews and key attributes.
Walmart also unveiled "Shop with Friends," an AR shopping tool that allows customers to share virtually created outfits with friends for feedback. This tool combines Walmart’s AI-driven virtual try-on technology with social features.
CEO Doug McMillon described this range of new offerings as “adaptive retail,” focusing on personalized and flexible retail experiences. Suresh Kumar, Walmart's global chief technology officer, explained that this innovative approach goes beyond traditional omnichannel retail to create a seamless and unified shopping experience.
Walmart is also implementing AI in its Sam's Club locations to address the challenge of long wait times for receipt verification at checkout. In a pilot program running at 10 locations, AI and computer vision will facilitate faster verification of purchases without the need for associates to inspect receipts, enhancing efficiency for nearly 600 clubs by year-end.
Additionally, Walmart’s generative AI tool for store associates, named My Assistant, will expand to 11 countries in 2024, operating in local languages. Currently available in several countries, this tool aids employees with writing, summarizing documents, and inspiring creativity.
Regarding AI advancements, McMillon emphasized that Walmart prioritizes the ethical implications of technology, ensuring it serves people rather than the reverse. He acknowledged, however, that while some roles may be transformed or phased out, new positions that offer greater satisfaction and often higher pay will be created, aiding associates in this transition.
The keynote also featured Microsoft CEO Satya Nadella, who discussed the transformative potential of generative AI in various sectors, including coding, productivity, healthcare, and education, while underscoring the importance of addressing the unintended consequences of new technology.
Beyond AI, Walmart is enhancing its drone delivery service, expanding it to reach 1.8 million households in the Dallas-Ft. Worth metro area, covering 75% of the region. With deliveries completed within 30 minutes or less, Walmart collaborates with Wing and Zipline for this service. Impressively, 75% of the 120,000 items available in Walmart Supercenters meet the criteria for drone delivery, and the company has executed over 20,000 drone deliveries during its two-year trial.
Overall, Walmart's innovations reflect its commitment to integrating advanced technologies to provide a better shopping experience and streamline operations.
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