Walmart's AI Enhances Grocery Delivery - Smarter Shopping

The Evolving Landscape of Grocery Shopping

The coronavirus pandemic significantly altered consumer shopping habits, particularly concerning groceries. A surge in downloads of grocery delivery applications was observed in March 2020. By April of the same year, Walmart Grocery, now integrated within the Walmart application, overtook Amazon as the leading shopping app on both Google Play and the App Store.

Despite the relaxation of pandemic-related restrictions, consumers continue to utilize grocery ordering for delivery or pickup at a higher rate than before the pandemic began.

Walmart's Technological Advancements in Grocery Delivery

As Walmart’s grocery delivery services have experienced substantial growth, creating competition for companies like Amazon and Instacart, the underlying technology has also been expanded. Walmart recently detailed its efforts in training its AI to enhance the intelligence of substitutions within online grocery orders.

The application of technology to grocery delivery is not a new concept. Last May, Walmart announced its use of AI to assess eligibility for its newly launched Express delivery service.

Instacart engineers reported, a year into the US coronavirus outbreak, that they processed “petabytes daily” to forecast grocery stock levels and estimate parking time.

What Distinguishes Walmart’s AI?

According to Srini Venkatesan, an executive vice president at Walmart Global Tech, the key differentiator lies in the extensive data available to train the AI. Each week, over 200 million customers shop at Walmart both in stores and online, purchasing from a selection of more than 150,000 grocery items.

This data is leveraged by the AI to anticipate consumer behavior, preferences, and requirements.

“The system we’ve developed employs deep-learning AI to analyze hundreds of variables – including size, type, brand, price, aggregated shopper data, individual customer preferences, and current inventory – in real-time to identify the optimal alternative product,” Venkatesan explained.

“The system proactively requests customer approval for the suggested substitution or allows them to decline it, providing valuable feedback that is incorporated into our learning algorithms to refine the accuracy of future recommendations.”

Improved Substitution Accuracy

Instead of relying on a personal shopper to quickly decide on a substitute for an item like cherry yogurt – considering options like a different flavor from the same brand or the same flavor from a pricier brand – the AI now makes this determination.

Development of this algorithm began last year, and since its implementation, customer acceptance of substitutions has demonstrably increased.

“Prior to the algorithm’s rollout, our acceptance rate was approximately 90%,” stated Venkatesan. “Currently, we are seeing rates between 97% and 98%.”

Expansion of Walmart’s Delivery Network

Over the past year, Walmart has doubled its workforce of personal shoppers to exceed 170,000 employees. Order pickup is now available at around 3,750 stores, and delivery services are offered from 3,000 stores, reaching 68% of the population.

Earlier this year, Walmart eliminated the $35 order minimum for its Express delivery service, positioning it as a direct competitor to Amazon’s Prime Now.

These developments demonstrate Walmart’s commitment to enhancing its grocery delivery services through technological innovation and expanded infrastructure.