Walmart Uses Generative AI to Transform Product Catalog, Boosting Efficiency and Personalization

September 7, 2024

Walmart has significantly boosted its operational efficiency and customer experience by implementing generative AI to enhance its product catalog. According to company executives, Walmart has used large language models (LLMs) to improve over 850 million product data entries—a task that would have required nearly 100 times the headcount and time if done manually. The generative AI has enriched product descriptions, filled in missing attributes, and made listings more informative, which has enhanced the company's ability to better match customer searches with relevant products, whether online or in physical stores.

The improved product descriptions, driven by AI, have helped Walmart better understand customer intent, leading to a more personalized shopping experience. For instance, when customers search for vague or broad terms, such as "football watch party," the AI can surface a variety of relevant products across categories, simplifying the search process.

This AI initiative has not only improved search relevance but also streamlined Walmart's marketplace operations. It has provided sellers with AI-powered tools to enhance their listings and manage their online presence more efficiently. Moreover, Walmart's e-commerce business has experienced a 22% global growth during this period, further emphasizing the importance of AI in managing the rapid expansion of its marketplace.

Walmart’s use of AI goes beyond product catalog management. The company has also rolled out AI-driven shopping assistants and virtual assistants, which can provide product recommendations and answer customer questions in real time. These tools are part of Walmart's broader push to integrate emerging technologies like augmented reality (AR) and AI-powered replenishment systems into their operations.

For example, Walmart’s Shop with Friends feature, an AR-driven social commerce platform, allows customers to create virtual outfits and share them with friends for feedback. Additionally, Walmart's InHome Replenishment uses AI algorithms to anticipate customer needs and automatically order essentials before they run out, offering a seamless shopping experience.

These innovations are part of Walmart's strategy to make shopping more personalized, convenient, and efficient, as the retail giant continues to integrate advanced technology across its operations. By leveraging generative AI and other cutting-edge tools, Walmart aims to stay ahead in the competitive retail landscape and deliver a superior shopping experience to its customers.