Doug McMillon, chief executive officer of Walmart Inc., left, and Satya Nadella, chief executive officer of Microsoft Corp., during the 2024 CES event in Las Vegas, Nevada, US, on Tuesday, Jan. 9, 2024.
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Planning purchases for a special occasion like recent Super Bowl parties or Valentine’s Day celebrations might typically require consulting more than one online source — or the primary source of Google — but if Walmart has its way, that is going to change in the future.
Walmart is talking up its ability to use generative AI as a one-stop shop to search when you need to plan an event, rather than online destination to search for individual items. During a call with analysts after its February earnings, Walmart CEO Doug McMillon talked about the gen AI search capabilities in its app.
“The thing we’re most excited about that’s already happened is the way search has improved, and the way generative AI helped us really improve a solution-oriented search experience for customers and members,” McMillon said on the earnings call. “And it happened pretty quickly.”
It also adds to the questions about future use of a search engine like Google.
Walmart long ago established itself as a major tech player, successfully fending off years of anxiety over Amazon and remaining a leader in the retail space whose shares are now trading at an all-time high. The tech narrative is one the company has been spinning since it bought Jet.com, started by a former Amazon executive Marc Lore, noted Forrester vice president, principal analyst Sucharita Kodali. As a technology company, Walmart has to experiment a lot, and in the case of adding generative AI search capabilities, there’s a very low cost for failure, she said.
“It establishes them as an innovator in the space,” Kodali said. “They’re better to be a leader than a follower in their shoes. They’re operating from a position of strength.”
Experiments can go wrong, though, as happened to Alphabet…
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