Walmart Taps ChatGPT. Here's Why This AI Deal Could Supercharge Its Stock.

Walmart (NYSE: WMT) is finding a new way to use artificial intelligence (AI). The nation's largest retailer announced a partnership with OpenAI, the maker of ChatGPT, that will allow customers to make purchases -- and even plan their shopping lists -- through ChatGPT's app.

Walmart already used a generative AI shopping agent, Sparky, to help consumers plan their purchases and make recommendations. The Oct. 14 announcement brings Walmart's brands to the dominant chatbot in the world, boasting 700 million weekly users and a global market share of more than 80%.

"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," Walmart CEO Doug McMillon said. "There is a native AI experience coming that is multi-media, personalized and contextual. We are running toward that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI."

Image source: Getty Images.

How the partnership works

Customers of Walmart and Sam's Club will be able to complete purchases directly within ChatGPT. The chatbot will be capable of learning and predicting shopping patterns, and help customers anticipate their needs, Walmart says.

Customers will use Instant Checkout on ChatGPT to complete their purchases. "We're excited to partner with Walmart to make everyday purchases a little simpler. It's just one way AI will help people every day under our work together," OpenAI CEO Sam Altman said.

What it means for Walmart

The partnership is Walmart's latest foray into using AI to improve operations and customer experience. The company started using natural language processing as early as 2020 to allow voice assistants such as Amazon Alexa or Alphabet's Google Voice to help them shop.

The company also operates a voice assistant for its employees, called Ask Sam, to help them locate store items, prices, and sales information.

And it rolled out a series of AI tools earlier this year for its employees, including real-time translation of dozens of languages and task management tools.

"AI is a key enabler in improving how we work, and we believe its full potential is unlocked only when paired with the strengths of our people," said Greg Cathey, a Walmart senior vice president, in July. "When you put intuitive, accessible technology into the hands of millions of associates, the impact isn't incremental -- it's transformational."

What it means for Walmart stock

Walmart has been one of the best-performing retail stocks in 2025, up 20% on the year to soundly beat the S&P 500's 14% gain. It's also performed much better than its competitors, including Kroger, Target, Amazon, and Costco Wholesale.

WMT data by YCharts

The company reported 20% year-over-year e-commerce growth in the second quarter of its fiscal 2026 year, with 26% e-commerce growth in the U.S. alone.

Innovations such as the company's partnership with OpenAI should help Walmart stock maintain and even increase its competitive advantage, particularly as customers become more reliant on chatbots for day-to-day tasks.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Costco Wholesale, Target, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.