The AI shopping wars are heating up, and Walmart is positioned to come out on top.
The concept of letting chatbots buy things on your behalf leapt from the realm of theory to reality when ChatGPT rolled out a series of shopping experiences with major retailers in November.
And on Sunday, Google’s AI platform Gemini announced a unique commerce approach it has developed. We work with many of the same retailers, including the world’s largest Walmart.
Both services promise to help customers find products and complete transactions in a more conversational and automated way, but Walmart’s new head of AI Daniel Danker said Tuesday that Gemini’s way of processing transactions is more seamless than ChatGPT.
“We’re essentially partnering their AI agent, Gemini, with our AI agent to build an integrated shopping journey,” he said at the ICR conference in Orlando. “Imagine a window inside Gemini where our shopping agent comes into play and helps you complete your purchase.”
Google said its new standard creates a common language for AI agents from different companies to interact.
Danker said Gemini allows Walmart to link a customer’s chat session to the customer’s existing Walmart profile or shopping session that Gemini is not involved in.
“In most cases, our customers are often members, not just customers, so they’re getting great delivery rates and a great experience that’s really tailored to them,” he said, referring to the subscription service Walmart+. “The experiences of its members manifest directly within Gemini.”
Danker said he expects Walmart will be able to capture more sales through agent shopping, even from people who may not have intended to buy. He said this new approach could allow for a near-seamless transaction when a person asks a chatbot to resolve a problem.
For example, if you turn to Gemini for tips on how to remove a wine stain from a particular brand of carpet, you can add the cleaning products to your existing shopping cart for one combined delivery, he said.
Danker said that by working with both ChatGPT and Gemini, Walmart can win in the AI space.
Shopping with chatbots appears to be here to stay, with Morgan Stanley analysts estimating that agent sales could add $115 billion to U.S. e-commerce spending by 2030.
Danker is betting that Walmart’s long-standing reputation for low prices and growing delivery capabilities will give the company a big advantage over customers in the AI space.
“The most important currencies in the world of agent shopping are actually trust and affordability,” Danker says. “Without trust and affordability, it’s very difficult for customers to hand over the wheel to someone else and expect the right thing to happen.”
Dunker said Walmart appears more frequently in shopping recommendations on Gemini and ChatGPT because of its wide selection, low prices and quick response times.
“It doesn’t just serve one need, it serves a number of needs,” he said.
