What: Walmart has implemented generative AI technology to improve search functionalities and empower frontline employees, resulting in enhanced customer service and streamlined operations.

Why it is important: The use of generative AI represents a significant advancement in how retail companies can better serve their customers and optimize their operations. By integrating AI into its systems, Walmart is able to offer more personalized shopping experiences, anticipate customer needs, and provide real-time solutions to in-store queries. This technological shift positions Walmart at the forefront of retail innovation, setting a precedent for other retailers to follow.

Walmart has begun using generative AI to refine its search capabilities and support its employees, aiming to deliver a more personalized and efficient shopping experience. CEO Doug McMillon highlighted the immediate positive impact of this technology during a February earnings call. The AI helps customers with complex, mission-based searches and provides associates with real-time information to better assist shoppers. For example, it can help locate specific products even with minimal customer input. This initiative is part of Walmart's broader strategy to leverage AI for boosting productivity and reducing costs. Despite the promising start, experts like Tom Taulli and Bernard Marr note that generative AI in retail is still in its early stages and will take time to become fully integrated into omnichannel strategies.

How Walmart is using generative AI