Retailers are increasingly employing artificial intelligence (AI) to optimize their customers’ shopping experience.
It’s a trend CNBC explored in a report Saturday, focusing on Walmart’s effort to use AI “super agents,” such as its “Marty” AI assistant, to save time for both consumers and employees.
The report also noted that this is happening against the backdrop of a wider shift in retail, with Amazon seeing generative AI use skyrocket by 3,300% during this year’s Prime Day event. And Google Cloud AI, the report added, has teamed with body care retailer Lush to visually identify projects without packaging, thus cutting down on the expense of training new employees.
Walmart is also invested in physical and spatial AI, CNBC said, pointing to the company’s use of digital twins (a virtual copy of any physical object or space) in its stores.
“At its core, retail is a physical business,” said Alex de Vigan, CEO and founder of Nfinite, which provides large-scale visual data for training spatial and physical AI models.
“We’ve seen retailers use digital twins to reduce setup time for new promotions, reallocate labor more efficiently, and improve robotic picking accuracy, small gains that add up quickly when margins are under stress,” he said.
This is happening at a time when Walmart is reconfiguring its physical and digital assets to entice third-party sellers, as PYMNTS wrote last week.
“Long cautious about opening its shelves to outside vendors, Walmart is now experimenting with ways to showcase marketplace sellers directly in stores, piloting physical displays that feature products from its online marketplace partners, blending the digital long tail with the tactile credibility of Walmart’s aisles,” that report said.
Walmart is also forming novel financial collaborations, such as the one it recently announced in Canada with Klarna.
It’s a move that highlights Walmart’s pragmatic streak, PYMNTS wrote, as the company focuses on “removing friction for sellers and buyers in immediate, tangible ways.” Speedier delivery, more payment flexibility and in-store visibility all underscore Walmart’s pitch to help merchants reach millions of shoppers on- and offline.
In addition, Walmart is positioning itself as a platform and not just a retailer. Amazon achieved its marketplace dominance by aggregating third-party sellers and monetizing them via fees, fulfillment services and advertising.
“Walmart, late to the game, now sees marketplace expansion as the fastest path to digital scale,” PYMNTS wrote. “By using its 4,600 stores as fulfillment nodes and marketing channels, Walmart can offer a hybrid model where third-party sellers benefit from eCommerce reach and brick-and-mortar presence.”
Source: https://www.pymnts.com/
