How AI and Automation are Transforming Retail, According to Walmart’s CEO

In the dynamic world of commerce, some things never change. Customers want low prices, a broad assortment, a great experience, and a company they can trust. But as Doug McMillon, CEO of Walmart, explains, the methods for delivering on those promises are in a state of constant, rapid evolution. McMillon’s vision for the future of retail is a powerful one: a “people-led, tech-powered” organization that leverages data, artificial intelligence (AI), and physical automation to serve customers in new and better ways.

The Accelerating Pace of Change

McMillon notes that the speed of change is “going straight up.” A few years ago, the focus was on building e-commerce. Today, the conversation has shifted to “generative commerce,” driven by advancements in AI. Walmart is not just a passive observer of this trend; it’s “leaning in” to make AI work for its customers and associates. The company is experimenting with a variety of AI tools, from generative AI-powered search functions that provide personalized product recommendations to internal “My Assistant” apps that help associates with tasks like summarizing documents and creating new content. McMillon is convinced that AI is going to “change literally every job” in the company.

The Power of People and Technology

McMillon believes that the key to future success is the unique combination of people and technology. While technology provides the tools, people are at the core of the business. He emphasizes that the company’s approach is “people first” and that they will continue to put people in front of people, recognizing that “until we’re serving humanoid robots and they have the ability to spend money, we’re serving people.” This “people-led, tech-powered” philosophy is evident in Walmart’s strategy, which includes leveraging AI, software, and physical automation to create a better, more efficient experience.

For example, Walmart is using deep learning AI to find the best substitutes for out-of-stock items, and automated bots like “Alphabot” to retrieve products from fulfillment centers for associates. The goal of this automation is not to replace jobs, but to transform them, allowing associates to supervise robotics and focus on higher-value work like customer service.

Preparing the Workforce for an AI-Driven Future

McMillon’s vision for the future of work is one of transformation, not mass layoffs. While some tasks will be automated, he believes new jobs will be created. He urges all professionals—and especially students—to embrace a mindset of continuous learning and to “lean in” to new technologies. The goal is to move beyond simply following what technology can do and to instead think about how to use it to solve problems and build things that have never been built before. He encourages people to develop skills that AI can’t replicate, such as creativity, critical thinking, and problem-solving. For McMillon, the future belongs to those who are willing to learn and adapt, and to form new habits in an ever-changing landscape.

Sources

https://www.linkedin.com/posts/brent-d-williams_this-week-on-a-quick-walk-with-brent-williams-activity-7381328876079296512-CV80?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAAQJSr0B6Q6h7twFAn9v3lao0swPiLg_Zuc