Walmart Innovates Search with Generative AI. Enhances E-commerce Experience with 'Purpose-Driven Shopping'

Which Company's Case Study Is This?

This case study features Walmart, the largest supermarket chain in the United States. The company operates under the motto 'Everyday Low Prices' and focuses not only on physical stores but also on its e-commerce business, with e-commerce sales exceeding 82 billion dollars in fiscal year 2023. In recent years, Walmart has been actively promoting the use of generative AI to further enhance customers' online shopping experience.

Challenges Walmart Wanted to Solve

Traditional e-commerce site search functions primarily relied on keyword searches, assuming customers knew specific product names. However, for customers with vague objectives, such as 'preparing for a child's birthday party,' it was time-consuming and cumbersome to search for each necessary item individually. Walmart aimed to address these 'purpose-based' shopping needs and provide a more intuitive and seamless experience.

How AI Was Used

In partnership with Microsoft, Walmart developed and implemented a generative AI search feature leveraging Azure OpenAI Service across its iOS, Android apps, and website. This system combines Walmart's unique vast product data and customer purchase data with large language models (LLMs). As a result, customers can simply enter their objectives in natural language, such as 'things needed for a soccer game-watching party,' and the AI understands the context, suggesting highly relevant products across various categories.

Implementation Effects and Key Takeaways

• ▸Evolved from traditional keyword search to 'purpose-based' search that understands customer intent, transforming the shopping experience into a more intuitive and convenient one.
• ▸By searching for 'birthday party,' decorations, games, tableware, etc., are suggested collectively, reducing the effort of multiple searches, clicks, and page navigations, thereby contributing to time savings.
• ▸Also deployed an internal AI assistant called 'My Assistant' to 50,000 employees, supporting tasks such as document summarization and content creation, aiming to improve productivity.
• ▸Beyond merely adopting technology, the crucial point is that Walmart is transforming the very act of 'shopping' for customers into a more personalized and efficient experience.

What Japanese Companies Can Learn

This case study offers valuable insights for many Japanese companies with e-commerce sites. It demonstrates the potential to create new purchasing experiences tailored to individual customer needs by combining proprietary product and customer data with generative AI. Companies that feel limited by keyword-based search, in particular, should consider implementing search functions centered around customers' 'objectives' or 'problems to solve.' It is possible to build similar systems, even on a small scale, by utilizing cloud services.

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