What: Walmart is leveraging generative AI to enhance its product catalog data quality, aiming to improve customer and associate experiences across its retail operations.

Why it is important: This initiative showcases the practical applications of AI in retail, setting a benchmark for the industry and potentially influencing how other retailers approach technology integration.

Walmart is harnessing the power of generative AI to enhance its product catalog data quality, with the goal of improving customer and associate experiences. CEO Doug McMillon emphasized the tangible ways AI is being leveraged to benefit all stakeholders. The company has used large language models to create or improve over 850 million pieces of data across its product catalog, a task that would have required 100 times more human resources without AI.

The improved data quality impacts various aspects of Walmart's operations, from helping customers find and purchase products more easily to optimizing inventory management and order delivery. In-store, associates can now use mobile tools to quickly locate inventory, significantly upgrading from the previous "treasure hunt" approach. Online, AI tools combine customer intent data with enhanced product information to present more relevant items to shoppers and improve product display pages.

Walmart is also focusing on "perfect orders," which measure the ability to find desired products online and ensure timely, undamaged delivery. This initiative is particularly crucial for Walmart Plus members, as free delivery is a core perk of the loyalty program. The company reported double-digit growth in Walmart Plus memberships during the quarter, partly attributed to these improvements.

These AI-driven enhancements align with Walmart's broader strategy of technological innovation. The company has been exploring various AI applications, including a GenAI Search feature for iOS users, an AI-driven InHome Replenishment service, and AI Receipt Verification for streamlined checkout processes. By integrating AI across its operations, Walmart aims to create a more seamless and personalized shopping experience while improving operational efficiency.

Walmart used AI to crunch 850m data points and improve customer experience