The chatbot also is intentionally flexible, with the new integrations in mind. “It can take on slight tweaks to the look and feel, to make it feel like a natural part of other environments,” Danker says.
Shopping Shift
The new Walmart experience is part of a broader pivot for OpenAI to focus on having checkouts take place within embedded apps, the Information reported earlier this month, without providing a rationale for the change. Danker spoke about the shift at the Morgan Stanley investor conference this month but didn’t cite the data behind it.
OpenAI spokesperson Taya Christianson says the company wants to focus on improvements to help users research products, while giving merchants more control over checkout. “We appreciate our partners for learning with us,” she added.
Walmart has excluded some products from Instant Checkout because it knew “the single-item checkout experience is detrimental” in some cases, Danker says. For instance, when someone buys a TV, they likely need to buy accessories like HDMI cables. On its website, Walmart can nudge shoppers to buy a bundle to avoid a frustrating installation experience, Danker says. Through Sparky, Walmart will be able to replicate that in chatbots.
Retailers were eager to collaborate on Instant Checkout because the alternative at the time to serve ChatGPT users was by linking out to their websites. Walmart believes the Sparky experience will feel even “more seamless,” because users will be able to continue chatting and refining their order without needing to reenter their payment and delivery information already saved with Walmart.
Sparky has been criticized by people purporting to work for Walmart on Reddit, and testimonials for the chatbot are difficult to find on social media. But half of Walmart app users have engaged with it, according to the company. While people typically use the app to search for staples such as milk and bananas, they ask Sparky about exotic items or for solutions to more complicated problems. Walmart US CEO David Guggina recently said Sparky users spend about 35 percent more per order than other shoppers.
Danker acknowledges that Sparky is slow and generates weak responses often enough that some consumers might dismiss it as unreliable. Danker says the priority this year is training Sparky to be more proactive, getting it to learn more about individual shoppers, and making it helpful across more of Walmart’s many departments, such as the pharmacy.
While Walmart is pushing Sparky elsewhere, it hasn’t—and doesn’t plan—to block other AI agents from shopping on its website. Amazon, on the other hand, recently won a temporary court order barring Perplexity’s automated technology from masquerading as a human to make purchases. Danker says Walmart wants to support whatever tools customers are using as long as it’s a good experience. As in, there shouldn’t be erroneous orders, shocking bills, or an excessive need for customer service.
“We don’t want to be prescriptive of the exact journey that every customer is going to take,” he says. “We don’t want to block things on a speculative or hypothetical concern.”
When it comes to how many consumers will trust AI with their shopping, Danker is prepared to speculate. “This idea that it will all become automated might be a little bit far-fetched,” he says. “People do get excited about shopping for clothes, for their home, for their children.” Walmart wants to leave users in control, just now with Sparky by their side in more places.
This is an edition of Will Knight’s AI Lab newsletter. Read previous newsletters here.
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