ROI of data cleansing
As part of its 21% global electronic commerce Generative AI played a supporting role in second-quarter growth by helping to stimulate digital impulse purchases, according to McMillon.
“One of the interesting developments in generative AI is that cross-category search is more effective, returns more general merchandise items and increases e-commerce profitability,” he said.
“We are in a position where we have the best e-commerce grocery offering and new tools are helping us connect impulse items, which in some cases are general merchandise, which is helping us increase both sales and profitability.”
Saunders describes Walmart’s use of generative AI as “classic,” such as helping customers search, providing employees with more information, analyzing customer data and updating product pages online.
“Many of the AI features are designed to improve the online experience. This is not surprising given Walmart’s strong focus on driving sales through its marketplace,” he adds.
In fact, as part of its efforts, Walmart is testing a generative AI assistant that will provide information summaries for sellers on Walmart’s third-party marketplace.
“We want our salespeople to focus on selling, so the more seamless we can make it, the better,” McMillon said.
The technology also helps display accurate product packaging images to make it easier for employees to pick online orders.
“The quality of the data in our catalog impacts nearly everything we do, from how we help our customers find and buy what they want, to how we store inventory across the network, to how we deliver orders,” McMillon said.
The retailer’s AI-powered shopping assistant, which consumers already use to find products, will soon be able to provide shopping advice and more personalized recommendations by asking shoppers more specific follow-up questions about their needs. McMillon gave the example of a consumer asking about the best TV for watching sports, and the assistant countered with a question about the lighting in the room.
For your radar
Analytics Unite2025 – April 28-30 in Chicago – brings together top executives from the retail and consumer goods sectors to discuss how to integrate generative AI across the enterprise. To learn more about this event, check out last year’s events.
