Walmart said on Tuesday it was partnering with OpenAI to enable customers and Sam’s Club members to shop directly within ChatGPT, using the AI chatbot’s Instant Checkout feature.
Shares of the company rose 5 percent to $107.21 at market close following the announcement.
The world’s largest retailer is expanding its use of artificial intelligence as companies across sectors adopt the technology to simplify tasks and cut costs.
Walmart has announced AI tools, including generative AI-powered ‘Sparky,’ which is available on its app to assist customers with product suggestions or summarising product reviews, among other options.
The company’s growing investment in AI is also aimed at closing the gap with online behemoth Amazon, which had a head start with its chatbot, Rufus, a Gen AI-powered shopping assistant that answers various shopping queries.
Walmart’s tie-up with the ChatGPT-maker follows a similar partnership OpenAI announced last month with Etsy and Shopify.
About 15 percent of total referral traffic for Walmart in September was from ChatGPT, up from 9.5 percent in August, data from Similar Web showed.
However, referrals are only a minor source of traffic and ChatGPT referrals accounted for less than 1 percent of total web traffic for Walmart, the research firm said.
Read Also: Walmart broadens 10% discount
Walmart is expanding its 10 percent employee discount to nearly all of its grocery items, including dairy and meat, through the year, the company’s chief people officer told its staff in a letter.
The discount, previously limited to fresh produce and general merchandise such as apparel, now extends to almost all food categories — including milk, meat, dry grocery, and seafood — in stores and online, effective immediately.
Walmart, the largest private employer in the United States, had previously extended its grocery discount during the holidays, but the perk will now be available year-round, the company said.
“We’ve heard your feedback that these savings make a real difference for you and your families,” Donna Morris, Walmart’s chief people officer, wrote in the letter.
Morris said the extension of the discount card program, first introduced more than 50 years ago, was among the company’s most requested benefits.