Walmart and Amazon are harnessing artificial intelligence (AI) to transform the retail landscape.
GlobalData, a leading data and analytics firm, highlights how both companies are pushing the boundaries of innovation, creating personalised experiences and enhancing operational efficiency.
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“Walmart and Amazon are no longer competing for market share alone. Their AI strategies are reshaping the entire retail ecosystem—from Walmart’s blend of digital and physical shopping experiences to Amazon’s operational automation,” says Kiran Raj, Practice Head of Disruptive Tech at GlobalData.
Redefining retail with AI innovations
Walmart’s foray into AI has been rapid and comprehensive. With over 3,000 AI-related patents filed, including a 20% increase in the last three years, the retail behemoth is exploring multiple AI avenues.
Notable innovations include augmented reality (AR) applications such as virtual try-ons and AI-driven in-store product recognition systems.
These technologies are part of Walmart’s goal to create a seamless shopping experience by blending physical stores with digital interactions. Its AR-based “Shop with Friends” feature, for example, allows customers to share and get feedback on fashion choices, further enhancing customer engagement.
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By GlobalDataIn-store, AI is helping to automate stock management, leading to quicker and more accurate customer service, while initiatives like Smart Factory AI and image-based transactions point towards a fully automated retail future.
Amazon, with more than 9,000 AI-related patents—50% of which were filed in the last three years—is at the forefront of customer personalisation and autonomous systems.
The company’s deep investment in AI-driven customer experiences can be seen through its highly personalised recommendations, powered by machine learning and extensive data analysis.
Amazon has also pioneered technologies like Autonomous Network Virtualization, setting new standards in data management and operational efficiency.
Its use of autonomous delivery systems such as Amazon Scout and Prime Air further cements its leadership in the AI-driven retail landscape.
Striking a balance: customer experience vs security
Security and customer experience are key focus areas for both retailers. Walmart is integrating intelligent voice assistants and AI-enhanced surveillance technologies to ensure a seamless yet secure shopping experience.
These innovations are not just about convenience but also about boosting customer trust. On the other hand, Amazon’s advanced AI applications focus on security at the enterprise level, particularly through AI for coding and surveillance.
Such systems enhance both consumer and operational security, ensuring smooth, safe interactions across its vast e-commerce platforms.
The road ahead: a new era of retail
As Walmart and Amazon continue to drive innovation, their strategies are creating ripple effects throughout the retail industry.
GlobalData notes that these developments could lead to major changes in areas such as supply chain innovation, customer loyalty programmes, and operational scalability.
“Walmart and Amazon’s aggressive innovation strategies not only strengthen their market positions but also set a blueprint for the future of the retail sector,” Kiran Raj concludes.
The adoption of AI across retail will only intensify, with both companies setting the stage for a new era of consumer engagement that blends convenience, personalisation, and cutting-edge technology.
These innovations are poised to reshape the future of shopping, influencing everything from how consumers interact with products to how retailers manage their operations.
Whether through Walmart’s integration of AR technologies or Amazon’s focus on autonomous systems, AI is undoubtedly the key to the future of retail.
