Walmart Tests AI-Powered Advertising with 'Sponsored Prompts' in Sparky Shopping Assistant

What's Going On With Walmart Stock Wednesday? - Walmart (NYSE:WMT)

Walmart Inc. (NYSE:WMT) is quietly testing ads inside its new artificial intelligence shopping agent, Sparky -- signaling a future where chatbot-powered recommendations become a major money-maker for online retail. The retailer has been quietly experimenting with new ad formats alongside select advertisers. One format, called "Sponsored Prompt," has already been tested in Sparky, which Walmart added to its mobile app in June, the Wall Street Journal reported, citing unnamed sources familiar with the matter. Also Read: Amazon Expands AI Shopping Assistant Rufus to All US Customers As Prime Day Approaches Sparky works like ChatGPT. It summarizes product reviews, compares items, and suggests options for specific needs or events. Walmart stock has gained over 19% year-to-date. The company delivered stronger-than-expected third-quarter results last week, reporting adjusted EPS of 62 cents versus the Street's 60-cent estimate and revenue of $179.50 billion, topping the $177.429 billion consensus. Walmart raised its 2026 adjusted EPS outlook to $2.58-$2.63, above its prior range $2.52-$2.62 and the $2.61 analyst consensus midpoint. The retailer boosted its fiscal 2026 constant-currency revenue growth forecast to 4.8%-5.1% up from the prior range of 3.75%-4.75%. Walmart will shift its stock listing to the Nasdaq on December 9, 2025, while retaining the "WMT" ticker. AI Strategy and Sponsored Prompt Tests Walmart is using the tool to protect its dominant position as AI-driven, autonomous shopping agents begin changing consumer behavior. The Sponsored Prompt feature drives brand engagement and personalized recommendations through Sparky conversations, the WSJ cited from a company presentation. During testing, Walmart displayed a Sponsored Prompt on Walmart.com. When users clicked on it, Sparky replied with an answer, followed by a click-to-buy ad for a featured product. However, engagement and click-through rates in Walmart's Sparky pilot remained low, sources told the WSJ. Retail Industry Shift Toward AI-Driven Commerce Retailers see an opportunity to increase online sales by pairing AI-generated guidance with detailed product data and insights on shopper preferences. U.S. consumers could spend over $1.27 trillion online this year, up nearly 17% from 2024, per eMarketer. Walmart has also tapped OpenAI so U.S. ChatGPT users can soon buy Walmart products directly in the chatbot. The company is doubling down on its high-margin advertising business as grocery sales -- historically low-margin -- continue to dominate U.S. revenue. Competitors are moving aggressively, too. Amazon.com Inc. (NASDAQ:AMZN) introduced Sponsored Prompts inside its own AI chatbot, Rufus, which has 250 million active customers this year. Price Action: WMT stock were trading higher by 0.78% to $107.83 at last check Wednesday. Read Next: Snowflake Acquires Data Startup Select Star To Boost Its AI And Cloud Capabilities Photo by refrina via Shutterstock WMTWalmart Inc$107.530.50%OverviewAMZNAmazon.com Inc$230.320.28%Market News and Data brought to you by Benzinga APIs

Walmart Considers Adding 'Sponsored Prompts' to AI Shopping Assistant | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The retailer tested a potential ad format from September to early November and is now considering how to proceed, the Wall Street Journal reported Tuesday (Nov. 25), citing a Walmart sales presentation. One possible format is a "sponsored prompt" that when clicked by the user, responds with an answer and a click-to-buy ad, according to the report. "Customers using Rufus during a shopping trip are 60% more likely to complete a purchase," Jassy said during the company's Oct. 30 earnings call. "Rufus is on track to deliver over $10 billion in incremental annualized sales." Walmart added its AI-powered shopping assistant to the Walmart app in June, saying Sparky makes recommendations and provides "instant and comprehensive" answers to product questions, helping customers understand specific features, compare items and make informed decisions. In October, Walmart said that it had enabled Sparky to serve as a party planner. When users tell the digital assistant about the occasion they are preparing for, it creates a curated list of items they will need. It was reported in May that Google was testing the placement of ads inside AI chatbot conversations. In the pilot, the firm inserted contextual ads into real-time chats between users and AI chatbots. Meta announced in October that it will begin using people's conversations with its AI features to create personalized ads and content, beginning Dec. 16. The company compared this experience to the ways its Facebook and Instagram platforms adjust their feed based on users' interactions with content. "Just like other personalized services, we tailor the ads and content you see based on your activity, ensuring that your experience evolves as your interests change," Meta said in a blog post. "Many people expect their interactions to make what they see more relevant. Soon, interactions with AIs will be another signal we use to improve people's experience."

Walmart developing ad placement on AI shopping agent Sparky - WSJ (WMT:NYSE)

Walmart (WMT) may bring advertising to its Sparky shopping tool as it explores additional uses for its agentic AI search agent and new ways to monetize chat-driven shopping. In an effort to stay ahead of online rivals and keep shoppers Integrating ads and product recommendations in Sparky could generate a new, high-margin revenue stream for Walmart by increasing ad business monetization. Amazon's Rufus has shown much higher shopper engagement and boosted completed purchases, while Walmart's Sparky engagement is currently low. Walmart faces low current Sparky engagement and will need to improve effectiveness and shopper adoption for ad-driven monetization to succeed.

Walmart tests ads in AI shopping assistant Sparky - WSJ By Investing.com

Investing.com -- Walmart is testing new advertising formats in its AI shopping assistant, Sparky, as part of efforts that could eventually lead to monetization of chat experiences. The retail giant has been quietly exploring ad formats with select advertisers, according to a report from the Wall Street Journal, citing people familiar with the matter. One format called "Sponsored Prompt" has been tested in Sparky, the AI shopping assistant added to Walmart's mobile app in June. Sparky functions like ChatGPT, offering capabilities to summarize customer reviews, compare products, and suggest items for various occasions. The feature is part of Walmart's strategy to maintain its retail dominance as AI-powered shopping assistants begin to emerge. The new ad format utilizes Sparky conversations "for brand engagement and personalized product recommendations," according to a Walmart sales presentation viewed by The Wall Street Journal. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.