Walmart CEO Doug McMillon gave the keynote speech on the opening day of the Consumer Electronics Show (CES) in Las Vegas. CES expected 130,000 attendees and 4,000 exhibitors to attend this year's four-day event, based on pre-registration for the show. These numbers include retailers, technology vendors, journalists, and more who gathered to discuss the latest trends in technology.
In his keynote, McMillon shared how Walmart is leveraging AI to improve the Walmart and Sam's Club apps. He outlined plans for a more efficient supply chain and the launch of drone deliveries.
“Business leaders are at a crossroads,” he said of how to approach advancing technology, particularly AI. He asked Microsoft CEO Satya Nadella how Walmart and other companies can leverage generative AI for social good.
“With any new technology, you have to be mindful of the opportunities it offers and be wary of unintended consequences,” Nadella said.
Walmart is ranked second in the world 2023 Digital Commerce 360 Top 1000, a ranking of North America's leading retailers by online sales.Also ranked in 9th place across global markets Depends on total product value.
Microsoft is one of them A leader in AI technology It is also the largest shareholder in OpenAI, the company behind ChatGPT. The technology company provides a variety of services to top 1000 retailers, including web analytics, online advertising, and cloud services.
Walmart collaborates with Microsoft on generative AI
Walmart has released a new AI-powered generative search feature within its app, now available to iOS users. The retailer plans to release it to all app users by the end of the quarter.
McMillon invited Nadella to the stage to share what Walmart's app uses. Microsoft's “Azure OpenAI”. The new search feature uses Microsoft's Large-Scale Language Models (LLM) in conjunction with Walmart data to provide consumers with more relevant results across product categories. McMillon gave the example of a shopper hosting a Super Bowl viewing party. Instead of looking for a new TV, chicken wings, chips or other necessities, he said, a single search would generate all these items.
Generated AI searches also take into account factors about the specific app user. Consumers' location, search history and other relevant information will be used to further narrow down the results, McMillon said.
Walmart's app now has AI features
The retail giant announced several other updates to its Walmart and Sam's Club apps Tuesday afternoon.
“We have a digital relationship [Sam’s Club] “Even when they're actually shopping in the store,” said Sam's Club Chief Merchant Megan Crozier.
Members can skip checkout by scanning items and paying with their mobile phone. The Sam's Club app also has AI-powered features that remind consumers of items they may have forgotten about when they shop, typically purchased along with items in their carts. Customers will no longer have to wait in line while employees check receipts and confirm purchases, Crozier announced. Sam's Club is deploying AI and computer vision technology to automatically confirm purchases so consumers can leave the store quickly.
Walmart also announced a feature called “Shop With Friends.” App users can create models using AI and AR and try on costumes virtually. You can then send it to your phone contacts and get feedback through the app.
Walmart+ customers also got updates thanks to AI. The retailer announced his InHome Replenishment, which uses AI to replenish members' essentials and deliver them directly to their refrigerators and pantries. This feature uses AI to learn which products customers repurchase regularly, how quickly they repurchase them, and automatically reorders them when necessary. Walmart says deliveries are different from subscriptions because they are not for a fixed period of time. Instead, replenishment is tailored to the user's needs.
Walmart Supply Chain and Fulfillment
Another important topic for Walmart speakers at CES was supply chain.
“There has never been a time for supply chain change like the one we are embarking on,” said Suresh Kumar, chief technology officer.
Walmart previously had three separate supply chains for non-grocery items, perishables and e-commerce items. Now, as consumers increasingly shop across all three categories, they are consolidating them into one supply chain.
Walmart is now deploying automated machine learning in its Walmart fulfillment centers to predict customer behavior and assign the right products to the right locations, Kumar said. The model uses dozens of types of data, including historical sales data, weather forecasts, and product trends on social media.
A more efficient supply chain allows customers to receive the products they want faster, he says. The next way Walmart will deliver these items is through drone deliveries in conjunction with Wings and Ziplines. Walmart plans to expand drone delivery to 75% of households in the Dallas-Fort Worth metropolitan area by the end of 2024. Drone deliveries will be Walmart's fastest delivery option, with deliveries promised within 30 minutes and in some cases as little as 10 minutes, Walmart said. About three-quarters of the products in Walmart stores qualify for drone delivery, which can be delivered within a 10-mile radius.
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