TLDR
- Walmart has partnered with OpenAI to allow customers to purchase items directly through ChatGPT using the Instant Checkout feature
- OpenAI will charge companies a transaction fee for purchases completed through ChatGPT
- The partnership was announced Tuesday with no specific launch date disclosed
- OpenAI previously launched Instant Checkout in late September with Etsy and plans to add over one million Shopify merchants
- Walmart CEO Doug McMillon says AI shopping experiences will be more personalized and convenient compared to traditional search bars
Walmart announced Tuesday it has reached an agreement with OpenAI to allow shoppers to buy products directly through ChatGPT. The retail giant becomes the latest major company to join OpenAI’s Instant Checkout feature.
The partnership gives Walmart’s customers access to a new shopping channel through the AI chatbot. Walmart has not provided a specific launch date for when the service will become available to shoppers.
OpenAI first introduced the Instant Checkout feature in late September with Etsy as the initial partner. The feature initially supported single-item purchases from Etsy sellers.
Shopify merchants are also joining the platform. OpenAI has said more than one million Shopify merchants will be added to the service soon. This includes brands like Skims and Glossier.
AI Changing How Consumers Shop
The deal reflects changes in consumer shopping behavior. More shoppers are using AI chatbots like ChatGPT to find gift ideas and search for deals.
Walmart CEO Doug McMillon addressed this shift in a news release. He said traditional e-commerce shopping with search bars and long lists of results is about to change.
McMillon described the new AI feature as multi-media, personalized, and contextual. He stated Walmart is moving toward a more enjoyable and convenient shopping experience.
The company is also testing other AI tools. Walmart has an AI-powered shopping assistant called Sparky on its mobile app.
Transaction Fees and Financial Terms
OpenAI will earn revenue from the partnership through transaction fees. The company charges businesses a fee for purchases completed through ChatGPT.
Walmart did not disclose the financial terms of its agreement with OpenAI. The company also did not reveal details about the fee structure.
Walmart shares rose about 3 percent in early trading on Tuesday following the announcement. The positive market response shows investor interest in AI-powered retail features.
Earlier this year, Walmart outlined plans for AI-powered “super agents.” These tools are designed to improve the shopping experience and make operations more efficient.
The Instant Checkout feature will initially support single-item purchases. Shoppers will be able to buy Walmart products without leaving the ChatGPT interface.
Walmart operates as the largest retailer in the world and the biggest grocery seller in the United States. The company is working to keep up with new product discovery methods used by consumers.
Shoppers are finding products through multiple channels now. This includes social media platforms, retailer recommendations, and AI chatbots like ChatGPT.
The partnership with OpenAI puts Walmart alongside other major retailers adopting AI technology. Companies across different sectors are using AI to simplify tasks and reduce costs.
Sam’s Club members will also have access to the shopping feature through ChatGPT. Walmart owns the warehouse club chain.
The news comes as OpenAI expands its e-commerce capabilities. Etsy shares rose following the announcement of its partnership with OpenAI last month.
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