Walmart, the American retail corporation, took a step forward with Artificial Intelligence (AI) to help people in planning an event before reaching out to Google. Now plan the important event with AI suggestions in the Walmart app instead of surfing online for every piece of information.
In an interview with CNBC, Walmart CEO Doug McMillon talked about AI success in contemporary shopping style, “The thing we’re most excited about that’s already happened is the way search has improved, and the way generative AI helped us really improve a solution-oriented search experience for customers and members.”
The biggest rival for Walmart is seen to be Amazon with the highest shares in the market in retail space. CEO believes that the experiment will have a low cost of failure and explains, “It establishes them as an innovator in the space.” Adding, “They’re better to be a leader than a follower in their shoes. They’re operating from a position of strength.”
AI in the retail market
Walmart isn’t the only player delving into advanced search capabilities within the retail realm. Instacart’s AI-driven “Ask Instacart” feature allows users to search by themes such as dinner or date night, rather than specific items.
Amazon’s Rufus, an AI shopping assistant, enables conversational interactions to assist users in finding what they need. Meanwhile, Shopify’s “Semantic Search” leverages AI to aid sellers in identifying the most suitable products for potential customers, ensuring more precise search results.
Sucharita Kodali, Vice President and Principal Analyst at Forrester, views the competitive landscape with less existential concern. While retailers are making strides with AI, she highlights the continued reliance on Alphabet’s core search business for a multitude of needs.
According to Kodali, the widespread use of Google for various purposes beyond shopping constitutes a significant portion of users’ search habits. Therefore, unless Amazon and Walmart expand their search capabilities beyond shopping-related queries, they are unlikely to significantly disrupt Google’s dominance in this arena.
Traditional approaches towards online shopping
The landscape of traditional search engines is ripe for transformation. Currently, users are inundated with thousands of results based on a search query, requiring them to sift through to locate relevant information. Moreover, advertising, particularly on search platforms like Google, remains a primary revenue source for companies.
In response to these challenges, a shift is occurring. These AI systems streamline the search process by providing specific answers and narrowing down options to a select few, saving users valuable time. Additionally, this approach enables companies to take ownership of the customer experience, fostering direct loyalty, and reducing reliance on securing top positions in search engine results.
Wallmart’s AI
Stefano Puntoni, a marketing professor at The Wharton School suggested that with the integration of robust generative AI technology on retailer platforms, customers may no longer feel compelled to turn to Google for information. “Maybe they’re able to get to learn about what they need directly on the retailer’s platform,” he added, according to CNBC.
Elav Horwitz, Executive Vice President and Head of Applied Innovation at McCann Worldgroup highlights the effect of generative AI search, stating, “What generative AI search does is it democratizes a lot of the opportunities now for brands and companies, who now can also create those.”
Meanwhile, Alphabet’s ownership of numerous widely used brands positions it to offer highly relevant advertising opportunities, leveraging valuable real estate to deliver more pertinent results than ever before.