Walmart said on Tuesday that it has struck a deal with OpenAI to allow purchases to be made through ChatGPT. Customers will soon be able to use the Instant Checkout feature to shop using the AI chatbot.
“For many years now, e-commerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change. There is a native AI experience coming that is multi-media, personalized and contextual. We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI,” said Doug McMillon, president and CEO, Walmart Inc.
Walmart also claims that this is “agentic commerce in action: where AI shifts from reactive to proactive, from static to dynamic.” The company also says it now “leverages AI across every part of the business.” However, it did not mention when shoppers will be able to start buying things through ChatGPT.
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OpenAI had launched the Instant Checkout feature — available to ChatGPT Pro, Plus, and Free logged-in users — last month. Instant Checkout builds upon previously available shopping features on the platform, that brought forth relevant products, images, reviews and prices in response to shopping-related questions. It allowed the purchase of products from U.S.-based Etsy sellers with more than one million Shopify merchants like Glossier, Skims, Spanx, and Vuori “coming soon.”
With Instant Checkout, users no longer need to leave the conversation to make the purchase, instead they can just tap “Buy” to confirm their order, shipping, and payment details (options include Apple Pay, Google Pay, Stripe, or credit card). This development places OpenAI in competition with search engines like Google, and e-commerce platforms like Amazon.
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In the release, OpenAI co-founder and CEO Sam Altman said the AI startup was “excited” to partner with Walmart to “make everyday purchases a little simpler.”
In a note to clients, UBS analyst Michael Lasser wrote that the initiative could “create significant opportunities” given its growing weekly user base. Lasser wrote that, once again, Walmart is “early in adopting new technologies to better reflect evolving consumer trends.”
“ChatGPT is being increasingly used for product discovery. Thus, this should provide incrementality and differentiation versus the rest of retail,” he added.
Walmart stock rose over 3% on Tuesday afternoon after the announcement of the partnership.