In a recent episode of the “McKinsey Talks Operations” podcast, Malte Kosub, co-founder and chief executive officer of Parola, an artificial intelligence company focused on transforming customer service, described the rapid evolution of AI.
“What we’re seeing now is that we’re moving from a generative AI world into an agentic world,” he said. “Agentic AI is more about a goal-driven approach, where the AI is capable of making decisions and taking actions on behalf of the human.
“In this third phase, we see companies implementing agentic AI to get value from goal-driven and process-driven tasks and work. We are already seeing enterprises moving to a fourth phase, in which they are integrating agentic workflows into their dealings with the outside world, and agentic AI is helping customers to solve problems in real time.”
That evolution is on full display at Walmart, which in recent weeks has launched a range of AI tools designed to enhance the shopping experience and make store associates and employees at other facilities more responsive and productive. Sparky, as the retailer’s new AI-powered shopping assistant is known, is the latest iteration in the company’s long-standing commitment to deploy technology to accomplish its mission of helping people save money and live better.
Speaking at Walmart’s annual Associates Celebration last month in Fayetteville, Ark., CEO Doug McMillon talked about the rapid evolution of customer-focused AI and how Sparky will dovetail with other emerging capabilities.
“I see a world where AI replenishment of essentials into our customers’ homes, and delivery by drone, come together to create an experience that feels magical,” he said. “Sparky starts as an assistant, responding to customers. In time, it’ll grow into an agent, taking some approved actions on behalf of our customers. It’ll be multi-modal — meaning people can interact with it using their voice, text, video or with images like a photograph of their pantry or the inside of their refrigerator.”
Available on the Walmart app and including all of the categories offered by the company in this country, Sparky helps customers find items and compare products, and offers tailored recommendations for special occasions. If all goes according to plan, reordering and service booking tools will be added soon.
“In the future, I believe lots of families will allow us to replenish their essentials,” commented McMillon. “They’ll expect us to remember what they love, anticipate what they need, and put it in their refrigerator or on their counter, in their garage or at their doorstep. We’re learning to build a customized basket for families that will keep them in stock on what they need in that moment.
“That sounds like the future, but we delivered our first replenishment order in April, and we plan to roll that capability out to Walmart InHome members this year. And we’ve already done over a million deliveries into customers’ homes. We know how to do this. We’ll replenish homes like we replenish stores.
“In the future we’ll be known for our low prices, an assortment that feels limitless and relevant, and an experience that’s even more convenient and delightful. Technology will help us do all that. But the real magic happens with the combination of our people and technology.”
Acting on that insight, Walmart is augmenting the efforts of its 1.5 million U.S. associates by equipping them with a suite of advanced AI-driven tools to facilitate such tasks as scheduling, language translation and accessing relevant information. The new tools supplement a lineup that includes MyAssistant, billed as a creative partner for corporate employees, and an AI aide for merchants. Element, a machine learning platform, is the foundation of Walmart’s AI work, enabling the company to move rapidly when innovations are ready to be rolled out.
The proprietary nature of Element underscores Walmart’s success in refashioning itself as a tech-powered merchant. During McMillon’s 11 years as CEO, the company has evolved from a business identified with its brick-and-mortar stores to an omnichannel retailer with expertise in disciplines throughout the organization, including digital technology, that rivals any in the marketplace.
Indeed, in no small part due to their prowess in artificial intelligence and other innovations in computer science — innovations that are coming at an ever-accelerating rate — Walmart and Amazon are pulling away from the rest of the field in mass retailing. Their scale and corresponding ability to invest in agentic AI — and whatever comes next — will give them a decisive advantage in the quest to reimagine how retailers can better meet the needs of customers and empower their workforce.