Walmart is quietly establishing itself as a major force in the AI revolution, leveraging its massive physical footprint and complex operations as a unique advantage over purely digital tech giants. While companies like OpenAI, Meta, and Microsoft dominate headlines with their large language models and cloud infrastructure, Walmart is proving that AI’s most transformative potential lies in solving real-world, physical challenges. With over 4,700 stores and a global network of distribution centers, Walmart handles billions of inventory movements every year. This scale creates a rich, real-time environment for AI to learn and optimize. Since around 2015, the company has been developing machine learning tools and automation systems to streamline everything from shelf stocking to spill cleanup. One key innovation is the use of digital twins—virtual replicas of each facility—that simulate product flow and help predict optimal inventory placement. Walmart’s AI isn’t just behind the scenes. Store associates now use AI-powered chatbots on handheld devices to prioritize tasks, manage customer needs, and make real-time decisions. “It’s a combination of people being powered by technology,” said Walmart US CEO John Furner at the Fortune Brainstorm Tech conference. He emphasized that retail requires human judgment, and AI is enhancing, not replacing, that decision-making. Behind the scenes, AI is accelerating e-commerce operations. David Guggina, Walmart’s head of e-commerce, noted that tasks once taking data scientists days or weeks can now be completed in minutes. AI-driven systems analyze local demand patterns, ensuring each store stocks the products most relevant to its community. This precision reduces delivery times to minutes after an order is placed, improving customer satisfaction and operational efficiency. The company has also deployed hundreds of specialized AI tools, known as “micro agents,” to handle specific functions like monitoring local events or tracking inventory levels. However, the proliferation of these tools created confusion, prompting Walmart to consolidate them into four “super agents” that assist shoppers, merchandisers, developers, and third-party sellers. Walmart’s in-house tech team of 20,000 engineers and data scientists enables rapid development and deployment of these systems. The company has strengthened its AI ambitions by hiring former Instacart executive Daniel Danker and deepening its partnership with OpenAI. This includes training programs for associates and enterprise access to ChatGPT tools for Sam’s Club warehouse staff. While AI chatbots may occasionally generate incorrect answers, Walmart’s strength lies in delivering tangible results—like ensuring a cold gallon of milk arrives on time. That blend of digital intelligence and physical execution gives the retailer a powerful edge in the next phase of AI innovation. As Furner put it, Walmart is “still early” in its automation journey—yet already, it’s making a significant impact.