Walmart executives see the promise of AI, but also the costs

This story was first published by Digiday sibling Modern Retail.

Artificial intelligence is allowing Walmart to achieve levels of personalization it has long dreamed of. At the same time, the company is also cracking down on redundant or inefficient uses of AI internally, knowing the technology has a price tag.

AI has allowed the retailer to build experiences based on a better understanding of consumer intent and language, Walmart CEO John Furner told reporters last Wednesday at the company’s headquarters in Bentonville, Arkansas, as part of its annual Associates Week and shareholders’ meeting.

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TikTok now has a seat next to Amazon and Walmart in RFPs

Brands are starting to put TikTok Shop in writing.

The platform is appearing in formal agency RFPs alongside Amazon and Walmart as a named channel with a committed budget. Normally, it’s more of a footnote on them. That’s a significant shift in status for a platform that spent years fighting doubts about its logistics, its ability to convert consumers and its very existence in the U.S. market.

Podean, a global marketplace agency, says it is fielding dozens more brand inquiries per month compared to this time last year. The contracts being signed are 12 months or longer. And the brands writing those checks aren’t startups. Sales from brands with $30 million or more in annual revenue grew 97% year over year on TikTok Shop, with transaction volume climbing nearly 80%. Ulta Beauty and Sally Beauty have both announced storefronts recently. PepsiCo has heavily invested too. 

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