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Diving certificate:
- Walmart is using generative AI to improve the data quality of its product catalog and deliver CX benefits for its customers and employees, executives said at a Conference call on Q2 2025 results Thursday.
- Cleaner data can help employees find specific products by quickly accessing packaging images. Customers who use Walmart’s AI assistants will soon receive more answers to their questions to help them find the right item, said Walmart CEO Doug McMillon.
- “We are finding concrete ways to use generative AI to improve the experience of customers, members and partners,” McMillon said during the call.
Diving insight:
Generative AI has found its place at the heart of Walmart’s efforts to improve customer experience. Better data processing capabilities are improving the behind-the-scenes operations that enable the customer experience in-store and online.
“The quality of the data in our catalog impacts nearly everything we do, from how we help our customers find and buy what they’re looking for, to how we store inventory across the network, to how we deliver orders,” McMillon said during the conference call.
Walmart used large-scale language models to create or enhance more than 850 million data elements in its product catalog. Without generative AI, the process would have required 100 times as many workers to complete in the same amount of time, executives said.
The most important improvement in the business is that employees In-store technology such as mobile tools to quickly find inventory and get items to shelves or to waiting customers – a significant improvement over the “treasure hunt” of locating items in previous years, said John Furner, President and CEO of Walmart US
Generative AI also improves the customer experience in e-commerce.
Walmart’s AI tools can combine customer intent data with enhanced product data to present customers with: Articles that meet your needssaid Furner. AI also improves the details on product display pages, helping customers determine if a particular product is what they need.
As Walmart expands its online assortment, better search capabilities will further enhance the digital experience.
“As our assortment has grown, we can now showcase these items in very high quality using new tools like generative AI and improved search functionality. This helps us better understand what customers are looking for depending on the season, time of year and day of the week,” said Furner.
Walmart focuses on perfect orders, which measure whether customers can find the products they want online and whether they are delivered on time and in good condition.
Perfect orders are key to eliminating friction and improving customer satisfaction scores for Walmart Plus customers, Furner said. Free shipping is one of the loyalty program’s key benefits, and better order fulfillment contributed to double-digit growth in Walmart Plus memberships during the quarter.
