Walmart shareholders reject AI workplace report as automation accelerates across operations

Walmart investors reject AI workplace report as automation expands in the US

Walmart investors on Thursday voted against a shareholder proposal asking it to report on how its use of AI is affecting the well-being of its workforce, according to preliminary voting results from the retailer's annual shareholders' meeting. Walmart investors on Thursday voted against a shareholder proposal asking it to report on how its use of AI is affecting the well-being of its workforce, according to preliminary voting results from the retailer's annual shareholders' meeting. The proposal, filed by investor United for Respect, comes in the teeth of Walmart's escalating battle against Amazon for ecommerce dominance. Walmart aims to get deliveries to customers within 30 minutes. Ava Williams, an overnight worker at ⁠a Walmart ⁠in Spokane, Washington, spoke in favor of the proposal, saying she has "repeatedly tried to sound the alarm" about how AI-driven employee standards are leading to "injuries, burnout, and high turnover." "We're expected to meet impossible timelines," Williams said, adding that workers are sometimes pressured to skip critical steps such as sanitising shelves and checking for expired products. "There is zero accountability for the tools that now impact our safety." Josh Allen, Walmart's head of frontline training, said the company's AI philosophy tries to emphasize "responsible use and human judgment." "AI learning should build confidence, not pressure," Allen said during an AI training presentation at Walmart's annual Associates Week event. Walmart is the largest private employer in the U.S. with about 1.6 million employees, according to its 2026 annual report. Walmart is ramping ⁠up investments in artificial intelligence and automation across its warehouses and stores, deploying tools such as "self-healing" inventory systems to monitor and replenish stock, and predictive demand forecasting. Sales in fast delivery rose more than 50% year-over-year in the first quarter, which Walmart reported in ⁠May. The company is also aggressively automating its back end. More than 60% of its stores now receive freight from automated distribution centers, and over 50% of its ecommerce fulfillment volume is automated, the company said late last year. It is leaning hard into AI-driven training tools, too. On Wednesday, a bakery manager at an Arkansas Sam's Club demonstrated to the media a tool that uses photos to assess the quality of freshly baked pies, and the proficiency of piped inscription on cakes. CFO John David Rainey has said these investments helped reduce shipping costs, which have been consistently dropping in the 30% range for several quarters. Walmart saw a 150% increase in same-day, next-day units sold from its fulfillment centers, Rainey told analysts on a post-earnings call in May. Risks around immigration policies Preliminary results of the vote also showed that shareholders rejected a proposal requesting a report on how shifting US immigration policy and enforcement under President Donald Trump may impact Walmart's operations. The proposal, submitted by SOC Investment Group, raised concerns that measures from the administration such as canceling humanitarian parole visas resulted ⁠in job losses and staffing shortages across the country. It noted that hundreds of workers at Walmart supercenters in Florida and Texas had work permits abruptly revoked. The proposal also said that the jump in the H-1B visa fee from $215 to $100,000 would also impact the company's ability to hire people and affect growth in its web platform and infrastructure. Walmart paused H-1B hiring in October last year, according to media reports, which was about a month after the fee revision. The proposal also said the pause on visa grants to foreign-born commercial truckers could lead to rising costs for Walmart. Walmart said it had not experienced significant operational or supply chain disruptions due to immigration-related policy changes. "Our use of employment-based visa sponsorships is actually a very small percentage of our U.S. workforce, and it's primarily for specialized roles and complements other forms of workforce planning," Donna Morris, executive vice president and chief people officer at Walmart, told investors.

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As the Financial Times (FT) reported Sunday (June 7), the retail goliath last week gathered thousands of its employees at its Arkansas headquarters to drive home the message that AI would enhance, and not eliminate, their jobs. This effort, FT points out, comes amid worries that the technology could make some workers' jobs obsolete. A recent report from job placement company Challenger, Gray and Christmas found that AI has been the number one reason companies gave for layoffs in the U.S. for the last three months. And Walmart reportedly cut or moved 1,000 corporate employees last month to bring together its global technology and product teams. However, executives at Walmart's annual Associates Week gathering described a future where AI will transform how people work, but not necessarily take their jobs, FT said. "Technology will power our future. But our associates will lead it." Donna Morris, Walmart's chief people officer, told employees. The company also announced that any Walmart staffer in the U.S. can now become certified in the use of OpenAI. FT noted that Walmart sped up its AI adoption last year when it recruited Instacart executive Daniel Danker to serve as executive vice-president for AI acceleration, product and design. He was paid $44 million last year, more than outgoing Walmart CEO Doug McMillon. McMillon's successor John Furner on Friday gave an award to a pair of Walmart engineers who had programmed a "vibe coding" platform being used throughout the company. It allows hourly-wage employees to create code to solve business problems, FT said. The news comes days after Walmart shareholders rejected a proposal that would have required the company to compile a report on AI/automation's impact in the workplace. The proposal presented by United for Respect called on Walmart to explain how it plans to address and measure impact of the technology as it embeds AI across its operations. "A report describing the principles guiding AI deployment, the metrics used to assess workforce impacts -- such as job quality, compensation, training effectiveness, and equity -- and the governance structures overseeing these systems would enable shareholders to evaluate whether Walmart's AI strategy aligns with its public commitments, supports long-term value creation and mitigates workforce-related risks," the proposal read. Walmart's board opposed the idea, arguing the company is committed to managing how AI and automation are deployed and the additional reporting would be unnecessary. For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.

Walmart Shareholders Reject Bid to Require AI Workplace Impact Report | PYMNTS.com

The shareholder proposal was presented at the company's Annual Shareholders' Meeting and received about 4.95% of the shares that were voted, Walmart said in a Thursday (June 4) press release. The Annual Shareholders' Meeting was held Thursday in a virtual-only format. The proposal presented by United for Respect would have required Walmart to prepare a report on the principles by which the company plans to address and measure the social implications on its workforce of the growing adoption of AI, automation and other advanced technologies, according to the text included in a proxy statement. Walmart is embedding AI across its operations; has rolled out AI-enabled tools that support hiring, scheduling, training and task prioritization; has expanded automation in fulfillment centers and supply chain operations; and implemented an algorithmic, performance-based system to determine hourly employees' pay increases, per the proposal. "For shareholders, the key question is how the Company is measuring and managing the workforce-related risks and opportunities associated with AI and automation," the proposal said. "A report describing the principles guiding AI deployment, the metrics used to assess workforce impacts -- such as job quality, compensation, training effectiveness, and equity -- and the governance structures overseeing these systems would enable shareholders to evaluate whether Walmart's AI strategy aligns with its public commitments, supports long-term value creation and mitigates workforce-related risks." The Walmart board of directors opposed the proposal, saying that the company is committed to managing how AI and automation are shaping the future of work and that the additional reporting sought by the proposal is unnecessary. In a statement in opposition to the proposal, which was included in the proxy statement, the board said Walmart already discloses relevant information in its annual report, earnings calls, investor forums, an annual report on strategies to create shared value, and other forums. "Through these channels, Walmart has consistently communicated that technology should serve people by elevating human capability, improving the customer experience, and making work more meaningful," the board said in its statement. "While roles and talent needs will evolve as AI and other technologies advance, we are committed to providing opportunities for our associates' continued development through investment in training, skill-building, and new career pathways."