Walmart has never hidden its ambitions in artificial intelligence. The retail giant released an AI framework centered on four super agents in the summer, enabled shopping functionality within ChatGPT in the fall, and announced a new partnership with Google Gemini over the past weekend.

If this sounds like Walmart is moving quickly, that is exactly its intention.

"Over the past year or two, we have been experimenting with this technology," said Daniel Danker, Walmart's Executive Vice President of AI Acceleration, Product, and Design, at the ICR conference in Orlando, Florida, last week. "This year is the year that experimentation turns into transformation. This year, we have built a considerable level of proficiency around it and will begin building products that deeply solve customer problems."

Danker cited many examples of how AI can improve the Walmart shopping experience. On one hand, he foresees repetitive grocery purchases shifting toward a more automated model, with AI understanding the restocking frequency of items. On the other hand, he envisions customers browsing AI-generated photos of themselves wearing desired clothing, or seeking styling advice from AI based on the existing items in their wardrobe.

"I compare all of us to carpenters who have been using screwdrivers, and suddenly someone brings in a power drill," Danker said. "There are things you cannot build without power tools, but with them, you can. AI is a power tool for us."

Danker also envisions that shoppers will significantly reduce scrolling due to the new level of personalization AI brings. This shift includes Walmart understanding which products customers are willing to splurge on and where they prefer value; it also involves narrowing customers' search results to specific items that best fit their needs and recommending other complementary products.

"When you already have ketchup, ground beef, and mozzarella cheese, we are fairly certain you are making lasagna—we do not need you to search eight times and flip through many pages just to add basil, tomato sauce, and ricotta," Danker said. "These experiences will become more human and more coherent. They will understand your intent and present it to you more easily."

Walmart's customer AI agent, Sparky, can already identify whether a specific customer buys the same items weekly and suggest a new order when they enter the app. It can handle customer service issues and answer questions such as "What removes red wine stains from carpet?" It can also remind customers of appointments at Walmart Auto Care Centers and prescriptions ready for pickup.

In the long term, Danker believes Sparky's chat interface and Walmart's traditional search bar will merge into one search system. For now, however, the two remain separate.

"This will not happen overnight, and it will not happen all at once, but I do believe this year we will deliver transformative experiences in the commercial space," Danker said. "So, when you look back a year from now, you will definitely say, 'Wow, this is so different from how I used Walmart in the past, and so different from what I expected when I opened the app.'"

What excites Danker most is the opportunity for Walmart to step in when customers ask services like ChatGPT and Gemini questions not directly related to shopping. Customers unsure of their needs might ask these services: what type of TV suits their space, how to remove red wine stains, or how to handle the new challenges of a newborn. Danker believes these questions may not start with purchase intent, but if Walmart appears in these scenarios, they could ultimately lead to purchases.

The big-box retailer's integration with Gemini allows users to enjoy Walmart membership benefits even when ordering through the AI platform; additionally, items ordered via Gemini can be added to customers' Walmart online carts without needing to place orders from multiple locations.

Of course, Walmart cannot directly control whether its products appear in ChatGPT or Gemini search results, but Danker believes the big-box retailer is well positioned in terms of algorithms. Specifically, Danker stated that if AI agents make choices for customers, Walmart's focus on price and speed will give it an advantage.

Walmart's stores will also benefit from AI. Over time, the company plans to digitize the in-store experience and integrate some AI-driven experiences into the physical environment. Employees are already using their own AI agents on the backend to efficiently restock and prioritize events such as liquid spills. Walmart's fulfillment centers are also using the technology to better predict which products should be stored.

Not everything Walmart tries will succeed, but Danker is open to that.

"The risk is that we build something that does not last. But in my view, the bigger risk is not leading," Danker said. "We will lead because we believe it can do things for customers that truly were not possible before... The only way for us to find what truly works is to try many things along the way. We are fortunate to be able to do that."