In Short:
Walmart is launching its “Adaptive Retail” strategy to offer personalized shopping experiences using advanced technologies like AI, Generative AI, and Augmented Reality. Their new GenAI system, Wallaby, creates tailored customer experiences, while a content decision platform predicts what customers want. Walmart’s AR platform, Retina, aims to engage younger shoppers in virtual environments. A fully personalized online shopping experience is set for next year.
Walmart’s Strategy for Adaptive Retail
Walmart has announced its intention to expedite the implementation of “Adaptive Retail,” which focuses on delivering highly personalized shopping experiences. The retail giant revealed that it is harnessing proprietary technologies, including Artificial Intelligence (AI), Generative AI (GenAI), Augmented Reality (AR), and immersive commerce platforms, to improve convenience and enhance customer engagement across its stores, Sam’s Clubs, mobile applications, and online environments.
Insights from the CTO
“A standard search bar is no longer the fastest path to purchase; rather, we must use technology to adapt to customers’ individual preferences and needs,” stated Suresh Kumar, global chief technology officer and chief development officer at Walmart. “At the heart of our platform strategy is developing common global core capabilities that are built once and deployed across Walmart US, Sam’s Club, and Walmart International.”
Wallaby: Walmart’s AI Innovation
Walmart has developed a proprietary system of GenAI platforms to drive its initiatives, the latest of which is named Wallaby. This system comprises retail-specific Large Language Models (LLMs) designed to enhance customer-facing experiences.
Wallaby has been trained utilizing decades of data from Walmart, allowing the integration of various LLMs to deliver contextually relevant responses that are consistent with the company’s core values. This architecture will underpin Walmart’s future customer interaction strategies.
Furthermore, Walmart has tailored its AI-powered Customer Support Assistant using a blend of GenAI platforms. This upgraded assistant will enhance service delivery by recognizing returning customers and expediting processes such as handling returns, thereby improving overall efficiency.
“The company is actively constructing numerous additional GenAI tools for customers, members, associates, and partners that harness its GenAI platforms, including advanced care assistants for Sam’s Club and Walmart International,” stated Walmart.
Enhanced Personalised Shopping
Walmart has introduced a Content Decision Platform, designed as a foundational tool to offer shopping experiences customized to each customer. Leveraging AI technology, the platform understands customer preferences and uses a GenAI-powered tool to anticipate the content they wish to see on the site.
This platform, aligned with Walmart’s Responsible AI Pledge, is currently in operation in select regions of Walmart.com. A fully personalized shopping experience in the United States is expected to launch next year, with plans to extend personalized item recommendations to Canada and Mexico.
Exploring Immersive Commerce and AR
To engage younger, tech-savvy customers, Walmart is expanding beyond conventional retail through the development of an AR platform named Retina. This platform utilizes AI, GenAI, and automation to generate thousands of 3D assets and immersive commerce APIs, facilitating advanced shopping experiences in virtual platforms such as Roblox.
Walmart is also piloting immersive commerce APIs with Unity and is set to launch a partnership with ZEPETO later this year. Through this avatar-based social platform, customers will have the ability to purchase items from Walmart’s No Boundaries brand for their virtual avatars, alongside corresponding real-world products.
Currently, Retina is deployed in 10 AR experiences across Walmart US and Sam’s Club, contributing to reduced return rates and heightened customer engagement. The platform is scheduled for expansion into Canada, Mexico, and Chile, with ongoing developments focused on headset-based experiences that enable customers to visualize furniture in inspirational settings.
The Future of Retail
“Being people-led means we start with the human need, and often, a combination of technologies like AI, GenAI, AR, and Immersive Commerce is key to the solution,” remarked Kumar. “Our customers guide us, and with these platforms, we’re prepared to meet their evolving needs.”
