Walmart and Amazon Expand AI Investments to Boost Efficiency

Walmart and Amazon are doubling down on AI investments to drive efficiency, enhance customer experiences and fuel business growth, with both companies making significant strides in expanding their AI capabilities across multiple divisions.

Walmart is expanding the use of AI-powered coding assistance and completion tools after seeing significant benefits in 2025, according to a Thursday (Feb. 20) report from CIO Dive. The tools helped save approximately four million developer hours last year by speeding up code delivery, reducing bugs and streamlining deployments. CEO Doug McMillon noted by improving productivity and cutting down on routine tasks, Walmart has more time to focus on initiatives that drive business growth. The retailer plans to roll out these AI tools to all developers in North America and India this year.

Company officials continue to prioritize generative AI to enhance customer and associate experiences. The company has grown its use of the internal AI tool, My Assistant, and is expanding the number of developers using coding tools, HR Brew noted in 2023. Additionally, AI is being applied to improve data hygiene, which elevates search and discovery capabilities. Despite some challenges with AI adoption in other sectors, Walmart remains focused on using technology to drive efficiency and improve customer experiences while making strategic investments in its tech infrastructure.

Meanwhile, Amazon plans to invest over $100 billion in capital expenditures in 2025, TechCrunch reported earlier this month, with the majority directed toward enhancing AI capabilities in its AWS cloud division. CEO Andy Jassy noted the company’s Q4 2024 capital expenditures of $26.3 billion are a good indicator of Amazon’s projected annual spend, amounting to roughly $105 billion for 2025. This marks a significant increase from $78 billion spent in 2024.

Despite concerns that the declining costs of AI might harm revenue, Jassy argued that lower prices would simply increase demand for AI services, particularly benefiting AWS. He compared the surge in AI demand to the early days of the internet and cloud computing.

Here’s a look at other notable developments from Amazon and Walmart:

Amazon Highlights

• Amazon Retail CEO: Focus on Innovation, Not Cutting Costs: Amazon’s retail CEO, Doug Herrington, cautioned against focusing solely on cost-cutting measures, stressing the importance of balancing efficiency with innovation. His comments come as Amazon undergoes significant cost reductions while planning $105 billion in capital expenditures for 2025. Despite layoffs, Herrington emphasized the need for investment in new growth opportunities, particularly in areas like fast delivery and AI.
• Amazon to Shut Down Android App Store and Coins Program: Amazon will shut down its Android app store on Aug. 20, and developers will no longer be able to submit new apps. The company will also end its Coins digital currency program, offering refunds for any remaining coins. While the app store will be discontinued on Android, it will still function on Amazon’s devices like Fire TV and Fire Tablets. Amazon also plans to end its Windows app store support in March.

Walmart Highlights

• Walmart Imposes Egg Purchase Limits Amid Bird Flu: Amid a nationwide bird flu outbreak affecting chicken populations, major retailers, including Walmart, are limiting egg purchases to ensure availability for more customers. Walmart is restricting buyers to two 60-count cartons per transaction, while other grocers like Aldi, Kroger and Trader Joe’s have also implemented similar limits, with some varying by region. Retailers are collaborating with suppliers to manage tight supply and control prices.
• Walmart Partners with Helios AI to Enhance Supply Chain Resilience: Walmart awarded Helios Artificial Intelligence its 11th Annual Open Call “golden ticket,” making it the first-ever software winner of the event. Helios’ climate risk and price forecasting platform will help Walmart strengthen its global agricultural supply chain by predicting climate-related risks and ensuring sustainable sourcing. Walmart is also expanding its use of AI to enhance supply chain resilience, leveraging Helios’ new features like future climate risk projections, historical pricing data, and customizable analytics.

The post Walmart and Amazon Expand AI Investments to Boost Efficiency appeared first on PYMNTS.com.