Walmart AI Examples Motivate MSPs to Learn About AI

MSP SUMMIT — Some of the biggest names in retail, manufacturing, transportation and more are using artificial intelligence in ways you wouldn't imagine.

That was the message from Doug Gray, director of data science at Walmart Global Tech, on stage at the MSP Summit in Atlanta on Wednesday. In his presentation dubbed “AI Is Real: How Large Organizations Like Walmart Are Putting AI to Work,” Gray told attendees there are two types of AI: automation (robotics) and the more common use of AI: augmentation — humans working with algorithms and analytics models.

Gray said humans and technology working together are better than they are separate. This is where the channel can come in.

“You may lose your job to a robot, but you’re more likely to lose your job to someone who knows more about AI than you do," Gray said in advice to the MSPs in the crowd.

Walmart is using AI and machine learning in a number of ways to be more efficient and to save money.

One is around "shrink," or inventory loss and theft. It's a $100 billion problem. Cameras and computers in stores scan barcodes upon customers exiting to keep them from getting away with merchandise they haven't paid for.

Walmart also uses AI for dynamic clearance optimization, or pricing markdowns, to make sure these decisions are best for cost-efficiency.

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Also notable is how machine learning analyzes thousands of customer surveys, a practice that used to require humans to evaluate them. In one example, Gray said that large language models were able to quickly tally thousands of surveys to learn why customers were returning products.

“We were able to save $70 million in returns by going back to the manufacturer [to analyze the data] and rectify these problems," said Gray.

Walmart also uses AI to make sure that its truck drivers are in the right place at the right time, saving on downtime and making them more efficient.

Of course Walmart isn't the only big company using AI and machine learning to make their businesses run more efficiently.

Schneider National trucking company has saved millions in transportation costs by developing its own AI logistics solution that reduced error in arrival times by 23%. That makes for happier customers as well.

The most famous (and older) example of AI in transportation and logistics is one you may have heard of. UPS started developing its ORION solution more than 20 years ago. By routing its trucks to avoid left turns, the company saves $400 million per year, after investing $250 million in the software.

“It’s very exciting, a great time to be in the AI space," said Gray, who encouraged MSP Summit attendees to get on board the AI train.