Walmart Considers Ads in Chatbot

Walmart is reportedly considering placing ads in its artificial intelligence (AI) shopping assistant, Sparky.

The retailer tested a potential ad format from September to early November and is now considering how to proceed, the Wall Street Journal reported Tuesday (Nov. 25), citing a Walmart sales presentation.

One possible format is a “sponsored prompt” that when clicked by the user, responds with an answer and a click-to-buy ad, according to the report.

Rival retailer Amazon recently added sponsored prompts to its AI-powered shopping assistant, Rufus, in North America, per the report.

Amazon CEO Andy Jassy said in October that its shopping assistant is now tied to 250 million active customers.

“Customers using Rufus during a shopping trip are 60% more likely to complete a purchase,” Jassy said during the company’s Oct. 30 earnings call. “Rufus is on track to deliver over $10 billion in incremental annualized sales.”

Walmart added its AI-powered shopping assistant to the Walmart app in June, saying Sparky makes recommendations and provides “instant and comprehensive” answers to product questions, helping customers understand specific features, compare items and make informed decisions.

In October, Walmart said that it had enabled Sparky to serve as a party planner. When users tell the digital assistant about the occasion they are preparing for, it creates a curated list of items they will need.

It was reported in May that Google was testing the placement of ads inside AI chatbot conversations. In the pilot, the firm inserted contextual ads into real-time chats between users and AI chatbots.

Meta announced in October that it will begin using people’s conversations with its AI features to create personalized ads and content, beginning Dec. 16.

The company compared this experience to the ways its Facebook and Instagram platforms adjust their feed based on users’ interactions with content.

“Just like other personalized services, we tailor the ads and content you see based on your activity, ensuring that your experience evolves as your interests change,” Meta said in a blog post. “Many people expect their interactions to make what they see more relevant. Soon, interactions with AIs will be another signal we use to improve people’s experience.”

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