Walmart Aims to Sell AI Truck Routing Tools to Other Companies

Walmart hopes to sell its AI-powered truck routing software to other companies.

Walmart has been using its Route Optimization tool — which uses artificial intelligence (AI) to plot more efficient routes for its delivery trucks — for years, and announced Thursday (March 14) it would make it available to other businesses.

“We have invested significant time, resources and operational knowhow into building solutions like Route Optimization, but that can be a barrier for many businesses,” Anshu Bhardwaj, senior vice president and chief operating officer, Walmart Global Tech and Walmart Commerce Technologies, said in a news release.

“By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their own technology, and instead focus on what they do best — serve their customers.”

According to the release, Route Optimization helps businesses of all sizes use the AI-driven software to find optimal driving routes, pack trailers efficiently and reduce miles traveled. Walmart says it used the technology to eliminate 30 million unnecessary miles, thus avoiding 94 million pounds of CO².

A report by Bloomberg News said the technology has helped the company save $90 million in one year.

The effort comes at a time when AI has become the focus of Walmart’s “retail tug-of-war” with rival Amazon, as PYMNTS wrote earlier this month.

Amazon recently increased its investments in AI, with its $1 billion innovation fund backing companies that combine artificial intelligence and robotics this year to boost efficiency throughout its logistical network.

Walmart’s AI push, meanwhile, has involved things like its AI search, something CEO Doug McMillon discussed on a recent earnings call.

“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,” he said. “And it happened pretty quickly.”

The tool is designed to make shopping quicker and easier. Instead of having to search for many different items one by one, such as snacks or decorations for a party, customers can now just type in the type of event they’re planning and get a list of everything they might need.

Walmart is also using AI to boost efficiency in stores, reducing labor costs at its Sam’s Club subsidiary, as Sam’s Club President and CEO Chris Nicholas told analysts on the retailer’s earnings call last month. The warehouse club chain is employing computer vision to remove the step where an employee needs to check self-service customers’ receipts at the exit.