Analysts are weighing in on Walmart’s announcement that it is accelerating its digital transformation by partnering with OpenAI to integrate ChatGPT into its shopping experience.
Walmart (NYSE:WMT) customers can now initiate a query, shop items, and check out seamlessly, building on the Bentonville, Arkansas-based company’s Sparky AI shopping assistant. Besides searching for particular items within its catalog, Walmart’s AI capabilities have now shifted from reactive to proactive and from static to dynamic.
Jefferies analyst Corey Tarlowe said the move by the retail giant at the forefront of AI-driven retail enhances convenience while reinforcing its value proposition of assortment, price, and speed. “We think this partnership will help reduce customer shopping friction, gain mind/wallet share with customers, and support sales and margin growth,” highlighted Tarlowe. The view is that WMT’s ability to leverage OpenAI could improve conversion rates and basket sizes while also reducing costs and enhancing speed-to-market. Looking ahead, those capabilities are anticipated to drive increased customer loyalty and higher margins
UBS analyst Michael Lasser said Walmart (NYSE:WMT) is being early in adopting new technologies to better reflect evolving consumer trends. “ChatGPT is being increasingly used for product discovery. Thus, this should provide incrementality and differentiation vs. the rest of retail,” he updated.
Morgan Stanley analyst Simeon Gutman said the firm does not believe any retail CEO has been more forthcoming or transparent on the urgency of being woven into the emerging AI/agentic hyperscaler web than Walmart (WMT) CEO Doug McMillon. “WMT and other leading retailers are more focused on how AI can drive customer engagement and sales productivity versus SG&A reductions. This focus captures the essence of WMT’s flywheel and serves as another proof point of how it will manifest,” wrote Gutman.
Shares of Walmart (WMT) moved 0.2% lower in premarket trading on Wednesday after rising 5.0% on Tuesday.