It seems that everywhere we look these days, generative artificial intelligence (AI) is the topic on everyone's minds, and the ecommerce industry is no exception. With technology continuing to evolve and scale, it’s no surprise that the use cases are being applied to all sectors. Businesses are beginning to see the impacts that generative AI can have on optimizing their operations and are seizing the opportunity, with Walmart taking point in this new wave of technology adoption.

What Is Generative AI? 

Generative AI, one of the hottest topics in tech, earned recognition as 2023’s "Word of the Year" by Collins Dictionary. But what exactly is it? Generative AI refers to advanced technology capable of creating new content—text, images, or even code—by identifying patterns in massive datasets. This technology uses machine learning models to analyze data, learn from it, and produce human-like outputs.

From ChatGPT to MidJourney, generative AI tools are already transforming workflows worldwide. According to McKinsey, these applications could generate up to $4.4 trillion annually for the global economy. The message is clear: generative AI is not just a buzzword but a pivotal force shaping the future of industries like ecommerce.

Walmart’s Generative AI Strategy 

The new wave of technological advancement is not only taking over traditional software spaces, but significantly impacting all industry sectors, including ecommerce. Generative AI applications in the retail and consumer goods sector are projected to see a potential rise in annual revenue by $400-$660 billion. With automated key functions like marketing, customer service, sales, inventory, and supply chain management, the implementation of generative AI is quickly gaining traction across all divisions. 

Embracing Adaptive Retail with Generative AI

Walmart is one of the leading retailers embracing generative AI as a core part of its business strategy to step confidently into the new digital era they’ve coined “adaptive retail”. This new strategy focuses on leveraging technology to meet consumers where they readily spend their time - online and engaging across multiple platforms. As part of this strategy, Walmart has shifted its focus to engage the next generation of customers on gaming platforms, partnering with Roblox to reach over 80 million daily users and solidify its presence in trending digital spaces. Walmart has created an online community and virtual shopping experience, “Walmart Discovered”, where users can explore trending items and creators, virtually shop products and create their own departments within Walmart’s digital storefront, using Roblox’s currency, Robux.

Wallaby: Walmart’s Proprietary AI Model

Complementing this approach, Walmart has even developed their own large language model (LLM), Wallaby, a retail-specific algorithm to work alongside other LLMs in creating a cohesive, customized retail experience. Trained off of Walmart's proprietary data, the LLM can predict the customer’s needs and tailor their experience aligning with customer behaviors, all while maintaining Walmart’s branded tone and voice. 

AI-Powered Customer Support

One example of Walmart’s AI advancements is their new AI-powered customer support chatbot. The generative AI tool empowers customers in their support journey. The new chatbot is designed to not only guide consumers through their customer experience, but take action as well, such as order cancellations or processing refunds. The company designed the chatbot to give customers autonomy when seeking swift support. As Walmart’s CTO & CDO, Suresh Kumar states “A standard search bar is no longer the fastest path to purchase, rather we must use technology to adapt to customers’ individual preferences and needs”. Walmart’s commitment to adaptation has been proven to pay off, with personalized experiences shown to increase customer engagement and satisfaction by 20% and reducing marketing and sales costs by 10-20%, positively impacting the company’s bottom line.

Creating a Personalized Shopping Experience

Walmart is a leader in offering a personalized shopping experience. By leveraging generative AI, the company is customizing online homepages for each customer, showcasing products and content most relevant to them. This tailored approach mimics an in-store shopping experience, making the online platform feel like their own personalized Walmart. Through generative AI, Walmart is anticipating the types of content customers want to see, further personalizing their experience, and fostering a deeper understanding of their preferences to enhance their shopping journey.  

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Streamlining Internal Processes with AI Tools

Beyond the customer experience, Walmart is leveraging AI to optimize internal operations for both in-store associates and corporate employees. Tools like “Ask Sam”, a voice-enabled assistant, helps retail workers locate products, check prices, and access store information across 5,000+ locations, improving efficiency and customer engagement by providing readily accessible key information.

On the corporate side, Walmart deployed “My Assistant”, a generative AI tool, that supports over 50,000 corporate employees by summarizing documents, assisting with writing drafts, and streamlining the onboarding process. By automating repetitive tasks, Walmart enables its teams to focus on higher-value areas like supply chain and merchandising.

What Ecommerce Brands Can Learn from Walmart

As an industry giant, Walmart operates over 10 thousand stores worldwide and employs nearly 2.1 million workers. With such an expansive reach, the company faces the need to evolve alongside the rapidly advancing technology landscape. Walmart has fully embraced this digital era, recognizing that generative AI is not just a passing trend, but a transformative force that’s here to stay.

Walmart’s generative AI strategy offers valuable insights for other ecommerce brands aiming to thrive in today’s competitive, digital-first market. Here are a few actionable takeaways to scale your business and stay current:

Deliver Personalized Experiences

Generative AI is providing ways for ecommerce brands to deliver personalized product recommendations and omnichannel interactions to customers, tailored to their interests, behaviors, and previous purchases. By leveraging AI and its ability to analyze patterns, businesses can now better predict a customer’s next purchase, improve conversion rates, and lead to better customer engagement and shopping experiences. This technology enables brands to hyper-target consumers, addressing their desires and pain points for a seamless and highly personalized buying journey.

To expand their reach, brands can also follow Walmart’s example by tapping into emerging platforms like the gaming industry. With over 3.32 billion gamers globally, platforms like Roblox offer a unique opportunity to engage future customers through interactive content, virtual storefronts, and in-game experiences. This strategy helps brands connect with consumers in the digital spaces they frequent, strengthening loyalty and engagement.

Enhance Customer Support with AI-Powered Chatbots

With the rise of new AI technology, chatbots are increasingly becoming the go-to solution for customer queries. As consumer buying journeys evolve, more customers are seeking quick answers to their questions, yet only 14% of consumers reported feeling satisfied with their online buying experience. Chatbots powered by generative AI are becoming more conversational, allowing them to easily respond to queries and accelerate the buying process. By providing tailored, easy-to-understand answers in seconds, these chatbots enhance customer satisfaction and reduce pain points in the customer's journey.

Automate Internal Processes

Similar to Walmart’s internal processes, businesses across all sectors looking to scale their operations are turning to AI for optimization. With more and more workflow tools arising, organizations can cut down on repetitive tasks for their workers by implementing generative AI systems and processes. Over half of CEOs surveyed in IBM’s Institute for Business Valuer report are currently implementing generative AI into their business processes. The use of generative AI can make teams more productive in product and content creation, allowing them to focus on higher-strategic decision making. 

Why Generative AI is the Future of Ecommerce

Generative AI is revolutionizing the industry by opening new avenues for brands to innovate and meet evolving customer expectations. From personalized product recommendations to streamlined customer support, AI enables brands to deliver more tailored, efficient, and engaging experiences across the buyer's journey. Embracing these advancements allows businesses to stay competitive, foster customer loyalty, and position themselves for growth in a rapidly changing digital landscape. With 69% of customers open to using AI to improve their experiences, buyers are ready to embrace the future of ecommerce - are you?