Why Is Walmart Partnering With OpenAI?

The country’s largest grocery retailer, Walmart, announced a new partnership with ChatGPT parent company OpenAI today that will soon allow consumers to make purchases directly within the chatbot’s platform via an Instant Checkout feature.

“For many years now, ecommerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change,” said Doug McMillon, president and CEO of Walmart Inc., in a press release.

Earlier this year, a PwC report outlined the need for CPG brands to begin optimizing products for agentic, or AI-first, shopping after finding that 40% of consumers expect to use AI to find and compare products by 2030 and over one-third reported they would allow AI to make purchases on their behalf.

Those behaviors are now one step closer to reality. Walmart believes this partnership will enable the retail experience to be “proactive” rather than “reactive” and help “customers anticipate their needs before they do.”

“There is a native AI experience coming that is multi-media, personalized and contextual,” McMillon said in the release. “We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.”

The retail giant, along with many others across the CPG ecosystem from brands to distributors, are already using AI to enhance product catalogs and improve the customer experience. Last month AI-driven product innovation platform NotCo added The Magnum Ice Cream Company to its roster of CPG partners while upstart tech outfit Starday opened up access to its technology, debuting the Starday Innovation platform.

As AI takes a more active role in product development, it is also poised to have a significant impact on shopping habits and consumer perceptions of health. According to SPINS, AI chatbots are increasingly being used by Gen Z (18%) and Millennials (13%) consumers to discover and understand new products.

Walmart aims to lead the way in that shift towards “agentic commerce,” which also comes amid a resurgence within the eGrocery space with food purchases totalling $12.5 billion in September, a 31% increase year-over-year, per the latest monthly Brick Meets Click Grocery Shopper survey, sponsored by Mercatus.

In addition to shaping shopping habits, Walmart is also supporting AI tools and training among its associates as one of the first to embrace OpenAI Certifications and roll out ChatGPT Enterprise across its workforce.

“The future of retail isn’t about replacing human connection with machines, it’s about using AI to remove friction and make everyday moments easier, smarter and more delightful,” the retailer said.