Walmart Partners With OpenAI: Revolutionizing Shopping Through ChatGPT Integration

Walmart has been extensively incorporating AI throughout its entire operational framework.

Walmart Inc. is establishing a collaborative partnership with OpenAI to allow customers to explore and acquire its products directly on ChatGPT, marking the retailer's latest initiative to integrate artificial intelligence into its business model.

According to Daniel Danker, Walmart's executive vice president of AI, product and design, users will be able to browse Walmart's product range directly on ChatGPT and make purchases by selecting a "buy" button. The available catalog encompasses apparel, entertainment items, packaged food, and various other products from both Walmart and its Sam's Club subsidiary.

"We perceive this as an opportunity to provide convenience in a way that meets customers where they are," explained Danker, who joined the company earlier this year from Instacart Inc. with the mandate to accelerate AI adoption.

Fresh food products are not included in this offering, partly because consumers tend to purchase similar food items on a weekly basis. The new functionality is scheduled to launch in the fall. Walmart's shares increased by 5% on Tuesday, closing at an all-time high.

Customers' existing Walmart or Sam's Club accounts will be automatically connected to ChatGPT. Products from third-party sellers will also be available through this platform.

UBS Securities LLC analyst Michael Lasser noted that this offering should provide Walmart with a competitive edge against its rivals as more consumers utilize ChatGPT to discover products.

"Once again, Walmart is demonstrating early adoption of new technologies to better align with evolving consumer trends," he wrote in his analysis.

People are increasingly utilizing AI for everyday tasks ranging from composing emails to searching for recipes. Shopping is emerging as another application, as consumers seek to compare deals and review consolidated product information.

In response to this trend, retailers are experimenting with tools designed to answer customer inquiries in real time and assist shoppers in finding desired products.

OpenAI has also established partnerships with Etsy Inc. and Shopify Inc. to enable ChatGPT users to purchase products from their respective merchants.

Walmart has been heavily investing in AI across its entire operation, deploying tools for employees, suppliers, and shoppers. Its staff is already utilizing AI for inventory ordering, schedule planning, and various other tasks. The technology is helping to accelerate operations, such as reducing production time for fashion items.

The ChatGPT agreement strengthens Walmart's partnership with OpenAI. The companies are also collaborating to develop a certification program designed to educate employees on more effective AI utilization in their job functions.

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