Exploring Walmart's Strategic AI Partnerships with Google Gemini and ChatGPT

The world of AI-driven shopping is becoming increasingly competitive, with Walmart striving to secure a prominent position.

What once seemed like a futuristic idea of AI handling purchases for consumers became a reality when ChatGPT introduced its shopping functionalities in collaboration with major retailers last November.

Following this, Gemini, Google's AI platform, unveiled its commerce strategy, which was developed with input from several top retailers, including Walmart, the retail giant.

Both platforms aim to facilitate product searches and complete transactions in a more natural, dialogue-based way. On Tuesday, Walmart's AI chief, Daniel Danker, highlighted that Gemini's approach offers a more refined transaction process compared to ChatGPT.

At the ICR Conference in Orlando, Danker explained, "Our AI system teams up with Gemini in a way that resembles an in-application window through which our purchase assistant seamlessly finalizes transactions."

Google claims that its new guidelines establish a universal communication protocol for AI agents across different companies.

According to Danker, the integration with Gemini allows Walmart to align customer interactions with their existing profiles and shopping activities, even in sessions where Gemini isn't initially involved.

"Our clientele frequently includes members benefiting from superior delivery charges and a personalized experience," Danker noted, specifically mentioning Walmart's subscription service, Walmart+. "This member-centric experience is seamlessly incorporated within Gemini."

Danker anticipates that this style of 'agentic commerce' will enable Walmart to capture sales from those who hadn't intended to shop. This capability allows users to almost effortlessly complete transactions by leveraging AI assistance to solve ordinary dilemmas.

For instance, Danker mentioned a scenario where a user queries Gemini for advice on cleaning a wine spill on a specific carpet brand, potentially resulting in an automatic suggestion or addition of a cleaning supply to their cart for grouped delivery.

Collaborating with both ChatGPT and Gemini positions Walmart strongly within the AI landscape.

As Morgan Stanley analysts forecast, the embedding of chatbots in shopping could potentially add an estimated $115 billion to U.S. e-commerce by 2030.

Danker places significant faith in the company's record of competitive pricing and growing logistical prowess to attract AI-powered consumer interactions.

"Trust and cost-effectiveness are paramount in the realm of automated shopping," Danker emphasized. "Customers' confidence and access to these advantages determine their willingness to delegate purchasing decisions."

Thanks to Walmart's extensive product selection, favorable pricing, and rapid delivery services, the brand often emerges as a preferred option in shopping suggestions by both Gemini and ChatGPT.

"Our approach caters to a multitude of demands," Danker concluded.