Walmart Partners With OpenAI to Power ChatGPT Shopping
Retail Giant Expands AI Strategy With Direct Purchases in ChatGPT
Key Takeaways:
- Walmart will let shoppers browse and buy products directly through ChatGPT under a new partnership with OpenAI launching this fall.
- The feature links users’ Walmart or Sam’s Club accounts and excludes fresh food, a move analysts say could differentiate Walmart as AI shopping expands.
- Walmart and OpenAI are also developing an employee certification program on AI use as the retailer continues integrating artificial intelligence across its operations.
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Walmart Inc. is teaming up with OpenAI to enable shoppers to browse and purchase its products on ChatGPT, the retailer’s latest push to incorporate artificial intelligence.
Users will be able to shop Walmart’s assortment directly on ChatGPT by clicking a “buy” button, Daniel Danker, Walmart’s executive vice president of AI, product and design, said in an interview. The catalog includes apparel, entertainment, packaged food and other products from Walmart and its Sam’s Club chain.
“We view this as an opportunity to deliver convenience in a way that meets customers where they are,” said Danker, who joined the company this year from Instacart Inc. to accelerate AI adoption.
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Fresh food isn’t included in the offering, partly because consumers buy similar products weekly. The new function will launch in the fall. Shares rose 5% on Oct. 14, closing at a record high.
Customers’ current Walmart or Sam’s Club accounts will get automatically linked to ChatGPT. Goods will also be available from third-party sellers.
UBS Securities LLC analyst Michael Lasser wrote that the offering should provide differentiation for Walmart against its competitors as more people use ChatGPT to find products.
“Once again, Walmart is being early in adopting new technologies to better reflect evolving consumer trends,” he wrote.
People are increasingly tapping AI for daily tasks ranging from writing emails to looking up recipes. Shopping is emerging as another use case, as people seek to compare deals and read aggregate product previews.
In response, retailers are testing tools aimed at answering customer questions in real time and helping shoppers find what they want.
OpenAI also has deals with Etsy Inc. and Shopify Inc. to allow ChatGPT users to buy products from their merchants.
Walmart has been leaning heavily into AI across its entire operation, rolling out tools for employees, suppliers and shoppers. Its staff is already using AI for ordering inventory, planning schedules and other tasks. The technology is helping speed up operations, such as cutting production time for fashion items.
The ChatGPT deal deepens Walmart’s partnership with OpenAI. Companies are also working together to develop a certification program that will teach employees how to better use AI in their jobs.
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