In This Article:
Walmart wants to further amp its business with emerging technology.
On its most recent earnings call, Doug McMillon, Walmart’s CEO, said the company has used artificial intelligence in a way that allows it to amp outcomes for consumers, sellers and internal employees.
More from Sourcing Journal
-
Byte-Sized AI: Ikea Pairs Drones and AI; Indian Textile Company Uses AI Model as Brand Ambassador
-
Walmart Dumps Stake in JD.com to Focus on Its Own Business in China
The company has been experimenting with AI for years, putting it ahead of many major industry brands and retailers. But the advent of generative AI several years ago has made the technology ultra buzzy throughout the industry. Walmart’s recent earnings call was no exception when it came to hype for generative AI, particularly as it continues to compete with Amazon—both for technological advancements and for market share.
Product attribution has become one of the most widely discussed—and implemented—use cases for AI as retailers and brands consider how it could impact their businesses. Some companies, like Lily AI, have popped up to aid companies in attributing their products based on natural language queries consumers would use. So, for instance, rather than searching for “blue silk dress,” a consumer might search for “formal wedding guest dress.”
McMillon said Walmart has used the technology to help it with clarity in its catalog, which has millions of SKUs in it at any given time.
“We’ve used generative AI to improve our product catalogue. The quality of the data in our catalogue affects nearly everything we do, from helping customers find and buy what they’re looking for, to how we sort inventory in the network, to delivering orders,” he said.
Further information and attribution about products can help them appear in the results for a wider variety of applicable consumer queries. In sorting through the company’s data to make that a reality, McMillon said Walmart found immense benefit from using AI.
“We’ve used multiple large language models to accurately create or improve over 850 million pieces of data in the catalog. Without the use of generative AI, this work would have required nearly 100 times the current head count to complete in the same amount of time. And for associates picking online orders, showing them high-quality images of product packaging helps them quickly find what they’re looking for.”
Already, AI has started to influence the consumer journey at Walmart, particularly where e-commerce is concerned, McMillon said. In January, the company announced it would be going public with its AI-powered search tool, which enables consumers to use conversational language in the search bar or to ask questions in the search bar. Examples include “What should I wear to a fall wedding?” and “What do I need for a Super Bowl party at my apartment?”