Walmart's GenAI search engine demonstrates success in an industry dominated by Google
Despite experts acknowledging Google's enduring relevance beyond retail, Walmart's success could pose challenges for the search engine giant.
Walmart's generative artificial intelligence (AI) search engine is earning accolades from experts, showcasing the company as a major player in the tech industry with its shares currently at record highs, even within an arena traditionally dominated by Google.
Despite experts acknowledging Google's enduring relevance beyond retail, Walmart's success could pose challenges for the search engine giant. The retail giant unveiled its generational AI search capabilities in January, positioning it as a comprehensive solution for users seeking specific information without redirecting them to external platforms like Google. GenAI search incorporates various factors, including location, search history, and contextual data, to refine results for users.
Walmart has established itself as a significant player in the tech industry, successfully navigating concerns over Amazon and maintaining a leading position in the retail sector. According to Sucharita Kodali, vice president and principal analyst at Forrester, Walmart, under Marc Lore's leadership, prioritizes continuous experimentation as a technology company, leveraging generative AI search capabilities with minimal cost of failure. Kodali emphasizes that Walmart operates from a position of strength in the industry.
Google Remains Relevant
Kodali perceives Walmart's success in comparison to Google as less of an existential threat. While early achievements in AI-driven retail searches are noteworthy, the global reliance on Alphabet's primary search engine remains substantial. Jacob Bourne, an analyst at Insider Intelligence, anticipates that retail-centric search engines will become the norm, pointing out Google's broader concerns regarding the future of search. This raises questions about the potential gradual erosion of Google Search through incremental challenges.
Search Engines Tailored for Retail Environments
Walmart is not the sole retailer embracing advanced search technologies. Instacart, for instance, features an AI-powered "Ask Instacart" function allowing users to search by themes like supper or date night, moving beyond specific item searches. Amazon offers an AI shopping assistant named Rufus, enabling users to engage in conversations about their needs rather than just searching for particular products. Shopify employs an AI-driven "Semantic Search" to enhance result accuracy and aid sellers in presenting suitable products to potential buyers.
Walmart's success occurs amid Alphabet, Google's parent company, prematurely releasing the Gemini gen AI. Google co-founder Sergey Brin publicly acknowledged initial mistakes but downplayed concerns about the company's future. Alphabet continues substantial investments in Gemini and other specialized AI tools designed to integrate into diverse retail ecosystems. Examples include Conversational Commerce tools from Google Cloud, enabling businesses to deploy virtual AI-powered customer service agents, and Vertex AI Search specifically tailored for retail applications.
