Walmart's Sparky Gets Advertising

Walmart is exploring integrating advertising into its AI shopping assistant, Sparky, to capitalise on the shift towards chatbot-guided e-commerce. The retail giant is testing ad placements and product recommendations within Sparky to enhance the online shopping experience and create new revenue streams.

Walmart is developing a 'Sponsored Prompt' feature, similar to Amazon's 'Rufus', that uses AI to summarise customer reviews, compare products, and suggest purchases. This format serves sponsored prompts based on user queries, with click-to-buy ads appearing below Sparky's responses. While Sparky's engagement is currently low, Walmart aims to boost its high-margin ad business and compete with Amazon.

This move reflects Walmart's strategy to stay competitive and engage shoppers effectively. By leveraging AI, Walmart hopes to improve navigation on its e-commerce platform and increase sales. The company's financial health is robust, with strong revenue growth and expanding margins, though insider selling activity warrants monitoring.