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Walmart has been utilizing its Route Optimization tool, powered by artificial intelligence (AI), to plan more efficient routes for its delivery trucks for several years. Now, the retail giant has announced that it will be offering this tool to other businesses.
Anshu Bhardwaj, senior vice president and chief operating officer of Walmart Global Tech and Walmart Commerce Technologies, stated in a news release, We have invested significant time, resources, and operational know-how into building solutions like Route Optimization, but that can be a barrier for many businesses. By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their own technology, and instead focus on what they do best — serve their customers.
Route Optimization is designed to help businesses of all sizes use AI-driven software to find optimal driving routes, pack trailers efficiently, and reduce miles traveled. Walmart claims that it used the technology to eliminate 30 million unnecessary miles, thereby avoiding 94 million pounds of CO² emissions.
This initiative comes at a time when AI has become a focal point in Walmart’s competition with rival Amazon. Amazon has recently increased its investments in AI, with its $1 billion innovation fund supporting companies that combine artificial intelligence and robotics to enhance efficiency throughout its logistical network.
Walmart’s AI efforts have included improvements to its AI search functionality, as discussed by CEO Doug McMillon on a recent earnings call. McMillon highlighted the improvements in search and the use of generative AI to enhance a solution-oriented search experience for customers and members, noting that these enhancements occurred quickly.
Walmart is leveraging AI to enhance efficiency in its stores, particularly at its Sam’s Club subsidiary. Sam’s Club President and CEO Chris Nicholas revealed to analysts on the retailer’s earnings call last month that the warehouse club chain is using computer vision to streamline the process of checking self-service customers’ receipts at the exit, reducing labor costs.
