Walmart Bets Big on AI as Inflation Rises
Walmart is leaning into its value proposition as inflation shows signs of picking up again heading into Christmas. Speaking at a major consumer conference, Walmart U.S. chief David Guggina said the retailer expects inflation in the second half of the year to mirror the first.
Guggina noted strong market-share gains as cost-conscious shoppers flock to its lower prices. The company has used a $2.9 billion tariff refund to fund 11,200 price rollbacks and avoid passing higher transport and fuel costs onto consumers, helping support traffic and sales.
Walmart's e-commerce is now profitable for a sixth straight quarter, with faster delivery and its Sparky AI shopping agent boosting conversion rates and raising average order values by about 40%. The company is also pushing deeper into advertising via Sam’s Club, rolling out AI-driven tools that mine membership data and over 400 intent signals.
However, Sparky and Amazon's Alexa are under political and regulatory scrutiny. U.S. Senators Tammy Baldwin and Rick Scott have asked the Federal Trade Commission to probe whether the AI tools suppress 'Made in USA' products and fail to flag falsely labeled goods.