Walmart Prepares for AI-Driven Shopping Revolution

Walmart prepares for a future where AI agents do the shopping

The big picture: A rise of AI shopping agents is promising to reshape the retail landscape in ways that are only beginning to come into focus. As Walmart navigates this frontier, the company's moves highlight a critical truth: the race to win over AI shoppers is just beginning, and the rules are being written on the fly. Walmart is gearing up for a dramatic shift in retail, as artificial intelligence agents begin to change not just how people shop, but who - or rather, what - is actually doing the shopping. The retail giant is exploring ways to make its products appealing not just to human customers, but also to the AI bots that may soon be making purchasing decisions on behalf of consumers. "It will be different," Hari Vasudev, Walmart US Chief Technology Officer, told the Wall Street Journal. "Advertising will have to evolve." Indeed, AI's influence is already visible today in how consumers research products, with search engines increasingly favoring AI-generated summaries over traditional links. But the next phase - AI agents making purchases independently - promises a far greater disruption. Imagine a future where a user tells OpenAI's Operator, "Restock my pantry" or "Find a 65-inch TV." The agent scans the web, evaluates options based on the user's history and preferences, and completes the purchase, payment included. For retailers, this means rethinking everything from product descriptions to pricing strategies, said Robert Hetu, a retail analyst at Gartner. The stakes are high: if third-party agents handle checkout, retailers risk losing direct relationships with customers, weakening brand loyalty and access to valuable data. Walmart isn't waiting passively. It's developing its own AI shopping tools, accessible via its app and website, capable of handling tasks as routine as weekly grocery reorders or as whimsical as planning a "unicorn-themed party for my daughter," Vasudev noted. The retailer's e-commerce sales surged 22 percent last quarter, yet it's also preparing for a scenario where shoppers prefer third-party agents like Operator. Vasudev predicts an industry-wide protocol will emerge, allowing third-party agents to communicate with retailers' systems. These standards, still in development, would let retailers share tailored product recommendations. Alternatively, agents might scan sites independently, akin to a shopper browsing a store without assistance, Vasudev said. But retailers face challenges. Agents like Operator prioritize factors such as search rankings, including paid ads and sponsored posts, when surfacing products. While user prompts and preferences remain central, this algorithmic approach contrasts sharply with human behavior. Bots won't linger on emotionally charged visuals, Hetu explained, and retailers must make lightning-fast pricing decisions by offering discounts or risking instant price comparisons by agents. Despite the buzz, Hetu tempers expectations. Over 80 percent of shopping still happens in physical stores, and AI-driven purchases remain a sliver of sales. "This is going to take time to transform," he said.

Walmart Prepares for a Future Where AI Shops for Consumers | PYMNTS.com

These AI-powered bots, capable of acting independently, could disrupt the traditional online retail experience by bypassing the typical search-and-advertising methods used to influence shoppers, the report said. Instead of scrolling through ads or comparing product reviews, future consumers may rely on digital assistants, like OpenAI's Operator, to manage their shopping lists, from replenishing household essentials to selecting the best TV based on personal preferences, according to the report. "It will be different," Walmart U.S. Chief Technology Officer Hari Vasudev said, per the report. "Advertising will have to evolve." The emergence of AI-generated summaries in search results has already altered the way consumers gather product information, the report said. However, autonomous shopping agents represent a bigger transformation. These bots could not only find products but also finalize purchases, including payments, without the user ever lifting a finger. "Walmart's announcement is a strong signal that they see AI shopping agents as an inevitable and imminent part of the retail landscape," Jerry Sheldon, retail analyst at IHL, told PYMNTS in an interview. "This move validates the momentum behind agent-based commerce and sets expectations for the broader industry." Will consumers use AI agents? According to the PYMNTS Intelligence report "How People Pay: Consumer Preference For Connected Technology," consumers are growing more comfortable with technology, and this attitude is reshaping how they pay. Retail experts say agentic commerce will require companies to overhaul how they market and present their products online, the WSJ report said. They may need to redesign product pages and pricing strategies to cater to algorithmic buyers. The customer relationship could shift away from retailers if purchases are completed through third-party agents. "The rise of AI agents will fundamentally change how retailers approach marketing and loyalty," Sheldon said. "Traditional methods may become less effective as agents make more purchasing decisions." "Retailers will need to rethink their strategies to remain competitive in an agent-driven world," Sheldon added. "First mover also means first experience, giving them a natural advantage and expertise when and if they need to pivot." To prepare, Walmart is developing its own AI shopping agents, accessible through its website and app, according to the WSJ report. These bots can already handle basic tasks like reordering groceries, and they're being trained to respond to broader prompts, such as planning a themed birthday party. Walmart is working toward a future in which outside agents can seamlessly communicate with the retailer's own systems -- something Vasudev told the WSJ he expects to be governed by industry-wide protocols that are still under development. "It's clear that Walmart's internal solutions, across data structures, platforms and systems, are now mature enough to support not just their own AI agents, but also a diverse range of agent-based solutions or are at least rapidly trending in that direction as a destination," Sheldon said. Industry standards will likely play a role, he said. Walmart's technical flexibility and advanced investment in IT systems position the company to accommodate proprietary and third-party innovations. Third-party shopping bots may also act independently, crawling retailers' websites much like consumers browse stores without engaging sales associates, the WSJ report said. In those cases, the retailer has little control over how its products are evaluated. Whether consumers instruct their AI to shop specifically at Walmart or ask for the best deal available, the outcomes will increasingly be shaped by algorithms, per the report. Operator, for example, considers search ranking, sponsored content and user preferences when making recommendations. That's a far cry from how humans shop. Bots don't respond to eye-catching visuals or emotionally driven branding in the same way people do. This means retailers must optimize their content not just for people but for machine readers as well, the report said. Pricing strategies could also shift as companies may need to make rapid pricing decisions and determine whether it's worth offering AI agents exclusive discounts to keep them from choosing a competitor's lower-priced item, according to the report. Meanwhile, Walmart is in the game early. It's "not just participating in the AI transformation, [it's] leading it," Sheldon said. "By staking an early and public claim in the agent-driven future, [Walmart reinforces its] reputation as a market leader in AI adoption and innovation."