In 2025, Walmart Inc., the global retail leader, revealed that over 40% of its new software code is generated by or based on artificial intelligence (AI). This significant shift, disclosed during the company’s latest earnings call, indicates a major transformation in Walmart’s operational model as it seeks to establish itself as a technology-centric player in the retail sector.
AI has become integral to Walmart’s operations, optimizing various functions from logistics to customer interactions on digital platforms. A notable implementation is Agentic AI, an advanced system designed to enhance product catalog accuracy, identify assortment gaps, and facilitate user searches. This technology is part of a broader initiative to improve operational efficiency and customer service, enabling Walmart to better compete with rivals like Amazon.
Walmart’s Chief Financial Officer, John David Rainey, stated during the call that the company is setting a new standard for omnichannel retail by integrating automation and AI to create smarter and more connected customer experiences. Rainey emphasized that the long-term strategy focuses on merging technological advancements with human resources to drive growth, noting that the company’s move to Nasdaq aligns with this vision.
The integration of AI extends beyond consumer-facing applications, reaching key backend areas of Walmart’s business. In its logistics network, more than 60% of merchandise transportation in the United States is facilitated through automated distribution centers. Additionally, over 50% of online orders are processed in facilities that utilize intelligent technologies. In inventory management, AI tools predict demand, minimize assortment errors, and optimize stock levels in real time, highlighting the extensive reliance on AI across operations.
The transformation driven by AI brings tangible benefits to consumers. Fast delivery services have seen a remarkable 70% increase in the last quarter, enabling customers to receive orders in less than three hours. This quick turnaround is particularly appealing to higher-income consumers and enhances Walmart’s position as a convenient shopping option. Furthermore, automated systems that identify trends and purchasing patterns allow the company to adapt its offerings promptly, leading to a more personalized shopping experience.
Walmart’s aggressive integration of AI signifies a pivotal moment for the retail landscape. No longer merely a physical entity with stores globally, Walmart is evolving into a technology platform that interlinks data, automation, and an omnichannel approach. This shift differentiates Walmart from traditional competitors and establishes it as a model for innovating within a workforce of over 2.1 million employees and an annual revenue of $681 billion.
As Walmart continues to push the boundaries of technology in retail, the implications for the industry are profound. The company is not only reshaping its own operations but also setting benchmarks for others to follow in an increasingly digital marketplace.
Walmart Inc. has positioned itself as a leader in integrating AI within retail, paving the way for more dynamic and responsive shopping experiences that could redefine consumer expectations across the industry. The investments made today will likely influence the retail landscape for years to come.
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