Walmart spearheads retail's future with AI and drones

These moves position the retailer at the forefront of blending digital innovation with an extensive physical store network.

Equipping employees

Enhanced AI-driven features within the Walmart employee app will now be made available to the retailer’s 1.5 million US workers, with new functionalities including AI-powered scheduling, training and real-time language translation supporting 44 languages. A key innovation is an AI task-management system that has drastically reduced overnight shift planning from 90 minutes to just 30 minutes. Associates also use handheld devices equipped with tools like step-by-step task guidance and an AI chatbot companion that simplifies complex procedures such as returns and instantly translates customer conversations.

These tools are delivered via Walmart’s proprietary Element AI platform, enabling rapid deployment and data governance. Following a pilot two years ago, 900,000 associates already use the conversational assistant weekly, processing 3 million queries daily.

“AI is a key enabler in improving how we work,” says Walmart senior vice president Greg Cathey. “When you put intuitive, accessible technology into the hands of millions of associates, the impact isn’t incremental—it’s transformational.”

Industry-wide adoption

Walmart’s AI push reflects a broader industry trend. Target launched its Store Companion generative AI chatbot for store teams chainwide in 2024, UK grocer Tesco uses advanced Blue Yonder software for workforce management across its stores and Carrefour has implemented a significant upskilling programme including generative AI training, for its 320,000 global employees. Companies like Home Depot and Verizon are also adopting in-store AI assistants. While aligning with peers on boosting productivity and training, Walmart stands out by integrating multiple AI features—language translation, task management, AR guidance—into a single platform, whereas competitors are so far piloting individual tools.

Scaling drone delivery

Simultaneously, Walmart is significantly expanding its drone delivery service, operated by Alphabet’s Wing unit. Building on operations in Dallas-Fort Worth and Bentonville since 2021 (completing over 150,000 flights), Walmart announced service expansion to Atlanta, Houston, Charlotte, Orlando, and Tampa. This expansion, covering roughly 100 stores, makes Walmart the first retailer to scale ultra-fast drone fulfilment across multiple states, reaching millions more customers. Customers order via the app, select a precise drop-off location and receive deliveries in 30 minutes or less. The service uses Wing’s fixed-wing drones (flying up to six miles beyond visual line of sight) and now includes thousands of SKUs.

Drone delivery context

Walmart’s drone initiative places it among global leaders in last-mile innovation. In the US, Amazon’s Prime Air also offers one-hour drone deliveries in limited areas, recently expanding its product list to 60,000 items. However, Prime Air’s scale remains limited compared to Walmart’s rapid store-based expansion via Wing. In Asia, Chinese giant JD.com claims to be the world’s first e-commerce company to commercially use drones, operating a nationwide network, including heavy-lift UAVs for rural areas. Alibaba’s Cainiao and other startups also deploy drones extensively in China. In Europe and elsewhere, partners like Wing are initiating services for retailers like Walgreens and targeting major grocers.

Strategic integration

Walmart’s dual focus on AI employee tools and drone delivery exemplifies its strategy to innovate both the worker and customer experience simultaneously. As consumer demand for convenience grows, Walmart’s broad innovation push bets on emerging technologies to provide it with a competitive edge against rivals like Amazon, Target, and Carrefour, highlighting the ongoing global retail tech arms race where both workers and customers stand to benefit.

ALCHEMPro News Desk (IL)