Walmart is expanding its reach in the technology sector by offering its AI-powered truck routing software to other businesses.
The retail giant has utilized its Route Optimization tool, driven by artificial intelligence (AI), for several years to optimize delivery truck routes. In a recent announcement on Thursday (March 14), Walmart revealed its intention to extend this technology to other companies.
Anshu Bhardwaj, Senior Vice President and Chief Operating Officer of Walmart Global Tech and Walmart Commerce Technologies emphasized the significance of this move in a news release. He highlighted Walmart’s substantial investments in developing solutions like Route Optimization and acknowledged the potential barriers faced by many businesses in building similar technology.
By making its AI-powered technology accessible to other businesses, Walmart aims to streamline operations and enable companies to focus on their core strengths — serving their customers.
According to Walmart’s announcement, Route Optimization offers businesses of all sizes the capability to utilize AI-driven software to optimize driving routes, enhance trailer packing efficiency, and minimize travel distances.
Walmart claims that through the adoption of this technology, it has eliminated 30 million unnecessary miles, leading to a reduction of 94 million pounds of CO² emissions.
A Bloomberg News report cited by Walmart stated that the technology contributed to $90 million in savings for the company within one year.
Walmart’s strategic move coincides with the growing emphasis on AI in the retail sector, particularly in its competition with Amazon.
Amazon has recently intensified its AI investments, allocating funds from its $1 billion innovation fund to support companies integrating AI and robotics to enhance efficiency across its logistical network.
Walmart’s AI initiatives extend beyond logistics. CEO Doug McMillon highlighted the advancements in AI search during a recent earnings call, emphasizing the enhanced shopping experience for customers and members.
Through generative AI, Walmart has improved its search function, enabling customers to quickly find items by simply typing in the type of event they are planning.
Furthermore, Walmart is leveraging AI to enhance operational efficiency in its stores. Sam’s Club, a subsidiary of Walmart, is utilizing computer vision to streamline the process of verifying self-service customers’ receipts at the exit, thereby reducing labor costs.
Sam’s Club President and CEO Chris Nicholas discussed these AI-driven initiatives during the retailer’s recent earnings call, highlighting the company’s commitment to leveraging technology to drive efficiency and enhance customer experiences.
