As Walmart and Amazon compete to provide the best online shopping experiences, both are increasing their use of generative AI (GenAI) to improve search offerings.
The former announced Wednesday (Oct. 9) that it is using new AI and augmented reality, among other digital technologies, to offer more immersive and personalized retail journeys.
“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,” Walmart’s global chief technology officer and chief development officer Suresh Kumar said in a statement.
The company shared that it has developed large language models tailored to retail use cases as well as a more individualized update to its AI-powered customer support chatbot. The retailer also shared its intention to “create a unique homepage for each shopper” using its GenAI, set to launch in the United States before 2026.
Amazon, for its part, shared Wednesday in a blog post that it is expanding its use of generative AI to enhance its eCommerce platform with the launch of AI Shopping Guides on its U.S. apps and mobile site.
“Guides help you reduce the time spent researching before you make a purchase by proactively consolidating key information you need alongside a relevant selection of products, making it easier to find the right product for your needs quickly,” Daniel Lloyd, the eCommerce giant’s vice president of personalization, wrote.
These guides, which are currently include more than 100 product categories, aim to simplify the product research process by compiling essential information and recommendations in one place. Using large language models, the system identifies key product attributes, features, and customer insights to generate tailored guides and product suggestions.
The post came the same day as longtime Amazon exec Matt Woods, who had been with the company for 15 years and who most recently served as vice president of AI, announced his departure via LinkedIn post.
Consumers, for their part, have mixed feelings about AI. The PYMNTS Intelligence study “Generation Zillennial: Voice Assistants and GenAI” revealed that most consumers (53%) feel that GenAI is “very open to misuse.”
Still, shoppers do want the kinds of personalized experiences that GenAI enables. Data highlighted in the March edition of the Payments Orchestration Tracker®, a PYMNTS Intelligence and Spreedly collaboration, revealed that 85% of consumers say that their favorite brands treat them like individuals.
Businesses, for their part, see GenAI technology as being key to their future success. The “How Simple, Routine GenAI Use Can Remake Enterprise Marketing” installment of the PYMNTS Intelligence 2024 CAIO Report series drew from a survey of 60 chief marketing officers from U.S. firms with 2023 revenues of at least $1 billion. The findings showed that eight in 10 see GenAI as very or extremely important to the customer experience.
As Walmart and Amazon intensify their use of generative AI, both companies are positioning themselves to shape the future of eCommerce. While consumers remain cautious about the technology’s potential misuse, their desire for personalized shopping experiences continues to drive demand. With AI-powered search and tailored recommendations becoming central to the online retail journey, these innovations reflect the growing role of GenAI in meeting evolving customer expectations.
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