Walmart has a reputation for offering a wide range of products at low prices. It isn’t necessarily known for having the best customer service and shopping experience.
But the company is taking steps to change that.
Walmart is using technology to improve the shopping experience, boost sales, and make its stores more efficient.
The retail giant is increasingly turning to AI, with its Sparky shopping assistant emerging as a key part of its strategy to give customers more reasons to shop at Walmart.
At the Goldman Sachs Global Consumer and Retail Conference, Walmart U.S. President and CEO David Guggina recently discussed how AI is reshaping the retailer. His comments suggest the technology could become an increasingly important part of Walmart’s efforts to attract customers while controlling costs.
“We have been leaning into AI for quite some time… and you can see it reshaping our company, reshaping our customer value proposition,” Guggina told Goldman Sachs’ Katharine McShane, as reported by Retail Dive.
That approach could give Walmart an important competitive advantage as shoppers continue to seek value and convenience.
Walmart’s AI assistant gains traction
Sparky, Walmart’s AI-powered shopping assistant, is becoming a central part of the company’s digital strategy. The tool is designed to help shoppers discover products and make purchasing decisions more easily.
The early results are encouraging. Guggina said weekly engagement with Sparky increased 60% quarter over quarter.
Walmart’s new visual search capabilities also generated a 57% increase in conversion compared with text-based searches.
Visual search gives customers another way to find what they want, particularly when describing an item in words is difficult.
Instead of relying exclusively on traditional search terms, shoppers can use images to help identify products.
Guggina also said customers using Sparky were generating average order values 40% higher than those of other shoppers. Higher average order values can help Walmart increase sales without necessarily requiring a corresponding increase in customer traffic.
Walmart is also exploring ways to extend AI beyond its existing shopping platforms.
Guggina suggested the assistant could eventually be integrated into other parts of the business to help customers navigate apps and shop through their televisions.
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Walmart sees AI as a way to improve the entire business
Walmart’s AI ambitions extend well beyond its shopping assistant. The retailer is also investing in automation and technology across its supply chain to move inventory more efficiently, improve product availability, and speed up fulfillment.
Those improvements can make a difference inside physical stores, too.
Better inventory management and faster replenishment can help shoppers find what they need, while more efficient operations can free up employees to focus on serving customers.
During Walmart’s second-quarter 2027 earnings call, CEO John Furner described the company’s broader strategy in terms that help explain why AI matters to its business.
“We believe AI will improve nearly every part of our business by making shopping better and our associates work easier,” Furner said.
The comments underscore Walmart’s goal of connecting technology investments with tangible improvements in customer experience and business performance.
The company is also benefiting from partnerships with external AI platforms, including ChatGPT and Gemini. Guggina said customers arriving through these services often demonstrate strong repeat shopping behavior, giving Walmart another potential avenue for attracting business.
Will Walmart’s AI investment translate into lasting gains?
For Walmart, there’s a real opportunity to combine its physical store network, digital platforms, and fulfillment capabilities into one increasingly connected retail operation.
There are still questions about how quickly these investments will translate into lasting gains, though.
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Higher spending per order does not automatically guarantee greater profitability, and Walmart must ensure that technology improves efficiency without making shopping more complicated.
Still, the retailer’s results suggest AI is becoming an increasingly important part of its growth strategy.
As shoppers demand competitive prices, convenience, and faster service, Walmart is betting that smarter technology can help deliver all three.
Sparky may be the most visible example of that effort, but the larger opportunity lies in using AI throughout the business to make shopping easier and operations more efficient.
Maurie Backman owns shares of Walmart.
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