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Walmart Accelerates AI Transformation With OpenAI Partnership
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Key Takeaways
Walmart partners with OpenAI to enable "AI-first shopping" directly within ChatGPT.
The retailer uses AI to boost productivity, speed fashion cycles and cut care resolution times.
Q2 fiscal 2026 revenues rose 4.8% as global e-commerce sales climbed roughly 25%.
Walmart Inc. (WMT - Free Report) is rapidly scaling the use of artificial intelligence across its business to enhance productivity, improve customer experience and strengthen operational efficiency. The retail giant has partnered with OpenAI to let customers shop directly within ChatGPT, blending conversation with commerce in what the company calls an “AI-first shopping” model.
The initiative allows users to plan meals, restock essentials or discover new products simply by chatting and buy instantly through “Instant Checkout.” Walmart believes this will move shopping from reactive to proactive, where AI doesn’t just respond but learns, predicts and anticipates what customers might need next. This partnership builds on Walmart’s growing use of AI across its ecosystem.
The company already uses machine learning to enhance product catalogs, cut customer-care resolution times by as much as 40%, and even reduce fashion production cycles by up to 18 weeks. Walmart has also been promoting AI literacy among employees.
In its recent second-quarter fiscal 2026 results, Walmart reported solid momentum, with total revenues up 4.8% and global e-commerce sales increasing about 25%. Management emphasized that AI is becoming deeply embedded in Walmart’s ecosystem — from the customer-facing “Sparky” assistant to tools that help associates and suppliers work smarter.
CEO Doug McMillon noted that Sparky is already shifting the shopping experience from traditional search to an intelligent, conversational model. Over time, it will evolve into a personalized digital companion that can manage everything from reorders to returns. Walmart is also building additional “super-agents” tailored to associates, suppliers, and developers to streamline scheduling, onboarding and innovation processes. These AI systems, combined with digital twins and predictive analytics, are expected to make operations faster, more accurate and more proactive.
Walmart’s Path to AI-Led Retail
As Walmart deepens its AI ambitions, the OpenAI partnership marks more than just a technological milestone — it’s a signal of where retail is headed next. By merging its vast physical and digital infrastructure with conversational intelligence, Walmart is positioning itself to meet customers where they are and how they shop.
The success of this initiative will depend on execution and consumer trust. If done right, it could redefine convenience and personalization at scale. Essentially, Walmart isn’t just experimenting with AI; it’s laying the groundwork for a future where shopping feels less like a transaction and more like a conversation.
Image Source: Zacks Investment Research
The Zacks Rank #3 (Hold) company’s shares have rallied 12.7% in the past three months, outpacing the industry’s growth of 6.4%.
Retail Stocks to Consider
Petco Health and Wellness Company, Inc. (WOOF - Free Report) operates as a health and wellness company that focuses on enhancing the lives of pets, pet parents and its Petco partners. It sports a Zacks Rank #1 (Strong Buy) at present. WOOF delivered a trailing four-quarter earnings surprise of 170.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Petco Health and Wellness’ current fiscal-year earnings indicates growth of 250% from the prior-year level.
Sally Beauty Holdings, Inc. (SBH - Free Report) operates as a specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2 (Buy). SBH delivered a trailing four-quarter average earnings surprise of 8.3%.
The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings implies an increase of 8.9%, from the year-ago actuals.
The TJX Companies, Inc. (TJX - Free Report) , an off-price retailer, currently carries a Zacks Rank #2. TJX delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 7% and 8.9%, respectively, from the year-ago reported numbers.
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Walmart Accelerates AI Transformation With OpenAI Partnership
Key Takeaways
Walmart Inc. (WMT - Free Report) is rapidly scaling the use of artificial intelligence across its business to enhance productivity, improve customer experience and strengthen operational efficiency. The retail giant has partnered with OpenAI to let customers shop directly within ChatGPT, blending conversation with commerce in what the company calls an “AI-first shopping” model.
The initiative allows users to plan meals, restock essentials or discover new products simply by chatting and buy instantly through “Instant Checkout.” Walmart believes this will move shopping from reactive to proactive, where AI doesn’t just respond but learns, predicts and anticipates what customers might need next. This partnership builds on Walmart’s growing use of AI across its ecosystem.
The company already uses machine learning to enhance product catalogs, cut customer-care resolution times by as much as 40%, and even reduce fashion production cycles by up to 18 weeks. Walmart has also been promoting AI literacy among employees.
In its recent second-quarter fiscal 2026 results, Walmart reported solid momentum, with total revenues up 4.8% and global e-commerce sales increasing about 25%. Management emphasized that AI is becoming deeply embedded in Walmart’s ecosystem — from the customer-facing “Sparky” assistant to tools that help associates and suppliers work smarter.
CEO Doug McMillon noted that Sparky is already shifting the shopping experience from traditional search to an intelligent, conversational model. Over time, it will evolve into a personalized digital companion that can manage everything from reorders to returns. Walmart is also building additional “super-agents” tailored to associates, suppliers, and developers to streamline scheduling, onboarding and innovation processes. These AI systems, combined with digital twins and predictive analytics, are expected to make operations faster, more accurate and more proactive.
Walmart’s Path to AI-Led Retail
As Walmart deepens its AI ambitions, the OpenAI partnership marks more than just a technological milestone — it’s a signal of where retail is headed next. By merging its vast physical and digital infrastructure with conversational intelligence, Walmart is positioning itself to meet customers where they are and how they shop.
The success of this initiative will depend on execution and consumer trust. If done right, it could redefine convenience and personalization at scale. Essentially, Walmart isn’t just experimenting with AI; it’s laying the groundwork for a future where shopping feels less like a transaction and more like a conversation.
Image Source: Zacks Investment Research
The Zacks Rank #3 (Hold) company’s shares have rallied 12.7% in the past three months, outpacing the industry’s growth of 6.4%.
Retail Stocks to Consider
Petco Health and Wellness Company, Inc. (WOOF - Free Report) operates as a health and wellness company that focuses on enhancing the lives of pets, pet parents and its Petco partners. It sports a Zacks Rank #1 (Strong Buy) at present. WOOF delivered a trailing four-quarter earnings surprise of 170.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Petco Health and Wellness’ current fiscal-year earnings indicates growth of 250% from the prior-year level.
Sally Beauty Holdings, Inc. (SBH - Free Report) operates as a specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2 (Buy). SBH delivered a trailing four-quarter average earnings surprise of 8.3%.
The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings implies an increase of 8.9%, from the year-ago actuals.
The TJX Companies, Inc. (TJX - Free Report) , an off-price retailer, currently carries a Zacks Rank #2. TJX delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 7% and 8.9%, respectively, from the year-ago reported numbers.