Diving Deeper Into The Future Of Retail

In a rapidly evolving retail landscape, few companies have been able to harness the power of artificial intelligence (AI) quite like Walmart. While most consumers are familiar with Walmart’s B2C offerings, the retail giant has been quietly revolutionizing the B2B space through its Walmart Business division.

I recently had the opportunity to speak with Ashley Hubka, Senior Vice President and General Manager at Walmart, to learn how the company is leveraging AI to create a more efficient, personalized, and streamlined B2B shopping experience.

Walmart Business: Meeting the Unique Needs of Organizations

Launched a few years ago, Walmart Business was born out of the realization that millions of businesses and nonprofits already use Walmart stores and websites for their procurement needs. However, these organizations have unique challenges that require a special approach.

“We heard a few key themes from organizations of all sizes and industries,” Hubka said. “They want to save money and simplify their business purchasing. They want to retain inventory and control. That control piece is critical, and they want to create efficiencies and opportunities.”

To meet this need, Walmart Business created a dedicated site, app, and omnichannel experience focused on organizational shoppers. The platform offers a wide range of products, from office supplies to break room supplies, all at Walmart’s everyday low prices. But what really sets Walmart Business apart is its strategic use of AI to enhance the B2B shopping experience.

AI-Based Personalization: Customizing B2B Experiences

One of the most significant ways Walmart Business is leveraging AI is through personalized and tailored experiences for its customers. Hubka emphasized the company’s “human-led, technology-powered” approach, ensuring that technology serves humans, not the other way around.

“We look at their behavior on our site, and then we can customize or personalize that experience to make it relevant to them,” Hubka said. “It’s relevant and it saves them money and hassle.”

This personalization applies to both new and existing customers. For new visitors, AI-powered prompts can prompt them to create an account or contact a sales representative. For existing customers, the system can provide tailored product recommendations based on previous purchases and browsing history.

Bridging the Gap Between Discovery and Purchase

In the B2B space, the journey from product discovery to purchase can be longer and more complex than B2C transactions. Walmart Business is using AI to close this gap, specifically through search engine optimization (SEO).

“We use AI to generate those keywords, and that information on the page helps search engines and ultimately helps business shoppers,” Hubka explained. This AI-driven approach not only increases Walmart Business’ visibility in search results, but also ensures that business customers can quickly find the products they need.

AI In Supply Chain: Improving Efficiency And Control

Behind the scenes, Walmart Business is benefiting from broader AI and machine learning initiatives, particularly in supply chain management. These AI-powered systems optimize inventory forecasting, planning and logistics, ensuring that business customers have access to the products they need when they need them.

“All of this advanced AI/ML machinery on the back end that optimizes our operations is meant to allow customers to be informed, make choices about how they want things fulfilled, and feel confident in the timelines they can see on our site,” Hubka notes.

The Human Touch in an AI-Driven World

While AI plays a critical role in Walmart Business operations, the company remains committed to its “human-led, technology-enabled” philosophy. This approach extends to how Walmart prepares its workforce for an AI-driven future.

“When we encourage people to start using [AI] and experiment with it, it becomes a little less scary,” Hubka said. He gave an example of how AI tools help employees summarize large documents and produce first drafts more quickly, freeing up time for more strategic and creative work.

The company is also investing in automation across its supply chain, creating new opportunities for employees to upskill and take on more technically advanced roles. “I now have a job that’s 15 percent manual. It’s more fun. It’s more interesting. And I’ve just been able to extend my career at Walmart in a new and different role,” Hubka said.

The Way Forward: The Future of AI in B2B Retail

Looking to the future, Hubka sees AI playing an increasingly important role in B2B retail. From more sophisticated personalization to optimized inventory management tailored to B2B demand, the possibilities are vast.

However, Walmart remains committed to the responsible use of AI. The company has developed the Walmart Responsible AI Pledge, which outlines six commitments to ensure the ethical and responsible use of AI and other technologies.

As Hubka put it succinctly, “We saw that there was a way to do this that could create a better customer experience, a better career, and a stronger business, that there was a clear overlap and a way that we could serve all three of those things simultaneously.”

Lessons for the B2B World

For other organizations looking to integrate AI into their B2B operations, Hubka offers this advice: “Let’s remember to put humans first, right? We have to keep that in mind as we make choices for technology to serve humans. We’re not ignoring them. We’re putting them first in that equation.”

As Walmart Business points out, the future of B2B retail lies in striking the right balance between cutting-edge technology and the human touch. By leveraging AI to increase efficiency, personalization, and control, while never forgetting about the people behind the organizations they serve, Walmart is setting a new standard for B2B commerce in the digital age.