The world of retail and eCommerce is changing fast, and if you’ve been keeping an eye on the giants like Amazon and Walmart, you know they’re not just sitting back. With tariff pressures and market uncertainties, they’re diving headfirst into technology, especially artificial intelligence (AI), to keep things moving smoothly and explore new opportunities.
Amazon is all about using AI to get closer to customers and automate processes. You might have noticed how they’ve tweaked their smart device privacy settings recently, sparking conversations about consumer data rights. On the flip side, Walmart is focusing on making its merchants more efficient and improving product sourcing through AI.
Both companies are also spreading their wings into new markets. Walmart is stepping up its game in freight services, even launching a brokerage program to polish its logistics skills. They’re setting the bar high for carriers, requiring them to operate between 10 and 1,000 trucks and have a solid five-year track record. With one of the largest trucking fleets in North America, Walmart’s move into brokerage is a big deal for third-party sellers and logistics partners.
Meanwhile, Amazon is reportedly eyeing the auto market, planning to help dealers sell used and new cars. This could shake things up for traditional dealerships and platforms like Carvana, as Amazon’s logistics network could offer a seamless, digital-first car-buying experience.
Walmart isn’t stopping there. They’re planning to open or remodel over 45 fuel stations this year, expanding their reach to more than 450 stations across 34 states by the end of the year. It’s clear they’re not just sticking to what they know.
On the AI front, both companies are leveraging this technology to stay ahead. Walmart introduced a generative AI-powered assistant named “Wally” to help its merchants source items and optimize product placement. This tool digs into complex data to pinpoint product performance issues and automate intricate processes. According to a PYMNTS Intelligence and AI-ID study, a whopping 77% of business leaders see generative AI as the game-changer for the retail industry.
Amazon, not to be outdone, has rolled out the next generation of Amazon Connect, integrating AI to boost customer interactions and business outcomes. Starting March 28, Alexa will handle all voice interactions in the cloud, unlocking new AI capabilities. However, this means that users can’t opt out of having their voice recordings sent to Amazon’s servers.
In the legal arena, Amazon recently scored a win with the dismissal of a class-action lawsuit accusing it of misleading shareholders about its pricing and logistics strategies. As these retail titans continue to innovate, the impact on the industry and consumers is quite significant.
It’s an exciting time in retail, and you can bet Amazon and Walmart will keep pushing the envelope. Whether it’s through AI or expanding into new markets, they’re setting the stage for what the future of retail might look like.
