Observed Signal · Mar 18, 2026 · Partnership · Source: Adweek · Impact: 4/5 · Sentiment: Positive
Walmart vs. Target: AI Strategies in Retail Showdown
Walmart and Target are pursuing divergent AI commerce strategies: Walmart is building in-house, LLM-powered tools and “super agents” (consumer and internal assistants) and embedding them into AI answer engines; Target is leaning on partnerships with OpenAI (ChatGPT) and Google (Gemini) while also deploying internal tooling for employees and designers. Target launched a ChatGPT-specific app that links to Target accounts, supports purchases and personalized recommendations, and enables Roundel to sell ads through ChatGPT’s nascent advertising program. Walmart is developing consumer-facing Sparky and supplier/operations agents (including Marty), testing ChatGPT instant checkout and plans to embed Sparky into ChatGPT and Gemini. Industry experts say Walmart’s integration of AI into its retail media stack and fulfillment scale gives it an advantage for advertiser optimization, while Target emphasizes partner speed and discovery-driven categories.
Strategies from two major retailers (Walmart and Target) affect retail media, conversational commerce placement, and ad inventory/activation across LLM-driven channels, with implications for advertisers, retail media networks and platform partnerships.
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Key Takeaways & Evidence Grounding
- Walmart is developing in-house LLM-powered 'super agents' including Sparky (consumer shopping assistant) and Marty (supplier/operations assistant).
- Walmart has partnerships with Google and OpenAI and is testing ChatGPT's instant checkout while planning to embed Sparky into ChatGPT and Gemini.
- Target signed a deal to make product assortments shoppable through ChatGPT and launched a ChatGPT-specific app connected to Target accounts.
- Target's ad arm Roundel can sell ads as part of ChatGPT’s nascent advertising program per the OpenAI deal.
- Target plans an incremental $2 billion in 2026 spending on guest experiences, including AI and brand marketing; Target also uses an internal tool called Target Trend Brain.
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Related Market Signals & Shifts
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Walmart's AI assistant Sparky drives CX gains and sales growth
Walmart U.S. President and CEO David Guggina highlighted at the Goldman Sachs Global Consumer and Retail Conference how AI is reshaping Walmart's operations and customer experience. AI-driven efficiencies have led to faster delivery and cost savings, reinvested into competitive pricing and CX. The retailer's homegrown AI assistant Sparky, now central to its experience improvements, saw weekly engagement grow 60% quarter over quarter and visual search capabilities led to a 57% spike in conversion. Sparky also drives 40% higher average order values. Walmart also benefits from external AI agents like OpenAI's ChatGPT and Google's Gemini, which deep link to Walmart, resulting in high conversion rates. This contrasts with Amazon's blocking of such agents. Guggina hinted at integrating Sparky into other areas like Vizio TVs.
Amazon and Walmart Dominate Retail as Others Scramble
Adweek reports that major U.S. retailers — led by Amazon and Walmart — are consolidating influence over retail ad budgets while other retailers struggle to compete. The piece highlights macroeconomic pressures (high consumer prices and geopolitical uncertainty) that complicate retail planning, and identifies artificial intelligence as an emerging differentiator as retailers weigh integrating third‑party AI answer engines versus building their own AI chatbots. The article notes Walmart and Target are controlling ad budgets and leading in AI efforts. The story is authored by Lauren Johnson, Adweek’s deputy editor of commerce.
Walmart Sees AI Promise — But Caps Internal Use
Walmart executives said generative AI is unlocking new personalization and productivity gains across the retailer, while also exposing cost and governance challenges. CEO John Furner and executives at the company’s Associates Week and shareholders’ meeting described faster product development, deeper intent-driven personalization, and the shift toward conversational shopping. Walmart has limited employee token usage for an internal AI assistant called Code Puppy because demand and redundant prompts drove up processing costs, Bloomberg reported. EVP Daniel Danker said Walmart is iterating on handoffs between external agents (like ChatGPT) and the retailer to preserve shopping control and improve conversion. Walmart leaders emphasized learning which AI use cases deliver value and where internal controls are needed.
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