Walmart Bets on AI Super Agents: Is Retail Entering a New Era?

The retail landscape is undergoing a significant transformation, and Walmart Inc. WMT is at the forefront, betting big on artificial intelligence. WMT is accelerating its push into artificial intelligence with the rollout of AI super agents that could redefine how the retail industry currently operates. CEO Douglas McMillon emphasized that artificial intelligence plays a vital role in enhancing both customer and employee experiences, with Walmart’s AI efforts built around four super agents designed to handle different aspects of the business.

Leading the charge is Sparky, the smiling digital assistant in Walmart’s app. Sparky is already shifting the experience from search-based navigation to AI-powered assistance and is set to become the primary tool for product discovery, reorders and returns. Early feedback has been positive, and Walmart plans to scale Sparky into a more intelligent and personalized companion for shoppers.

Complementing Sparky are three more super agents. Starting with the associate agent, which will consolidate key functions such as scheduling and sales data into one hub. For suppliers and advertisers, another agent will simplify onboarding, order management and campaign execution, enhancing efficiency across Walmart’s ecosystem. The final developer agent is designed to accelerate innovation by improving how Walmart tests and launches new products. 

Walmart has created leadership roles focused solely on artificial intelligence. WMT is exploring AI-powered digital twins of facilities that can predict or prevent issues and provide more accurate delivery windows covering 95% of U.S. households by the end of the year. By embedding artificial intelligence, Walmart is signaling that the next era of retail will be shaped as much by intelligent agents as by physical stores.

What the Latest Metrics Say About Walmart

Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has been a standout performer, with shares rallying 28.5% in the past year, almost in tandem with the industry’s growth of 28.2%. Shares of Costco have advanced 6.6%, while Target declined 41.1% in the aforementioned period.
 

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 36.98, higher than the industry’s 33.81. WMT carries a Value Score of C. Walmart is trading at a premium to Target (with a forward 12-month P/E ratio of 11.38) but at a discount to Costco (48.55). 
 

The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 4% and 3.6%, respectively. 
 

Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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