As Walmart and the retail behemoth embrace new technologies to remain competitive, Amazon has ramped up its investments in artificial intelligence this month.
Franziska Bossart, the leader of Amazon’s business venture capital division, revealed that the company’s $1 billion Industrial Innovation Fund is expanding its funding in enterprises that merge AI and robotics this year to enhance efficiency across its operational framework.
Among the dozen investments previously made by the company is Mantis Robotics, a firm specializing in crafting a humanoid mechanical arm. Moreover, Amazon has committed up to $4 billion to support Anthropic, a startup focused on generative AI.
In addition, Amazon is leveraging its B2B services to boost its earnings while harnessing new AI capabilities. Mistral AI models will be integrated into Amazon Bedrock’s offerings on February 23, enriching the eCommerce platform’s service by providing foundational models for businesses sourced from both internal teams and external AI startups. This AI firm offers advanced AI functionalities such as text summarization, structuring, question answering, and code completion.
Walmart is also leveraging AI to enhance operational efficiency in its stores and reduce labor expenses for its Sam’s Club division, as highlighted by Sam’s Club President and CEO Chris Nicholas during the company’s recent earnings briefing. The chain of warehouse clubs is implementing machine vision technology to streamline the process of verifying receipts for self-checkout customers at the exit.
Across its organization, Walmart extensively integrates AI technologies. During a phone conversation, Walmart CEO Doug McMillon expressed enthusiasm about the potential of AI advancements, emphasizing the opportunities to elevate customer experiences, enhance employee productivity, and drive cost savings for the company.
McMillon underscored the company’s use of AI to refine search functionalities, resulting in more intelligent recommendations when users search for terms like “help me buy a Valentine’s Day gift.”
Consumers are increasingly engaging with AI tools. According to a report by PYMNTS Intelligence titled “AI-Enabled Payments Enhance Customer Options,” a majority of individuals regularly interact with AI-related features. The report indicates that 84% of consumers conduct online searches, 52% utilize navigation apps, and 52% rely on online product recommendations. Furthermore, one in three respondents noted the significant presence of AI technologies in their daily routines.
These AI advancements are pivotal as Amazon and Walmart vie for dominance in terms of American financial investments. Based on the November edition of PYMNTS’ “The Money Report” titled “Amazon Expands Its Lead Over Walmart in Retail Spend,” which draws insights from earnings disclosures and data from the U.S. Census Bureau and Bureau of Economic Analysis, Amazon commanded 8.2% of U.S. consumer retail expenditure in Q3 2023, surpassing Walmart’s share of 7.2%.
The ongoing investments by Amazon and Walmart in AI underscore their commitment to competitiveness and their recognition of the pivotal role technology will play in shaping the future landscape of commerce.
