Google Search utilizes generative AI capabilities to assist users in purchasing items for specific occasions, while Walmart is experimenting with similar technology to enhance the search process, focusing on providing solution-driven experiences. Despite these developments, the perceived threat to Google is minimal, considering its widespread utility across various aspects of users’ lives. Meanwhile, Walmart is actively positioning itself as an innovative leader within the industry, leveraging advancements in technology to strengthen its competitive edge.

Google Search’s generative AI features enable users to buy items for special events like the Super Sunday match in the English Premier League. However, this might require users to navigate through multiple web pages. Walmart aims to streamline this process by providing a convenient one-stop shopping solution, saving users time.

As per a CNBC report, Walmart is developing a feature harnessing generative AI to provide a comprehensive solution for all requirements, rather than merely serving as an online platform to search for individual items.

During a discussion with analysts following its February earnings, Walmart CEO Doug McMillon elaborated on this feature within its application.

McMillon expressed his excitement about the notable improvement in search functionality and the significant role generative AI played in enhancing a solution-driven search experience for customers and members. He emphasized on the swift pace at which these advancements occurred.

Sucharita Kodali, Forrester’s Vice President and Principal Analyst, suggested that Flipkart-owner Walmart had the freedom to experiment with incorporating generative AI search capabilities due to the minimal risk associated with potential failures.

Kodali further remarked that it positions them as innovators within the industry, emphasizing the advantage of leading rather than following in their current position of strength.

Google is not facing an existential threat

According to the analyst, Google’s threat isn’t existential because people heavily depend on Google for various purposes beyond party planning. Furthermore, introducing AI in one area to compete with Google’s entire business might not significantly impact the company.

Kodali noted that individuals develop a habit of relying on Google for all their needs. She pointed out that apart from shopping, approximately 90% of searches encompass various other aspects. She further added that unless Amazon and Walmart were going to enter into the business of the other 90% of the searches, it was unlikely they would pose a significant threat to Google.

Meanwhile, Google has integrated generative AI into its search platform and is actively refining the search experience. Additionally, it is investing in Google Cloud’s Vertex AI Search specifically tailored for retail purposes.

Google is being swamped with ads for incredibly cheap products by Temu, the international arm of the Chinese e-commerce giant Pinduoduo. Similarly, as it gears up for its initial public offering, fast-fashion retailer Shein is flooding Instagram with ads for clothing and accessories at rock-bottom prices.