Walmart says AI will not set personalized prices

  • Walmart President and CEO John Furner said AI will not set personalized prices.
  • Shares fell about 2.6% to $105.86 around 11:30 a.m. ET Tuesday.
  • Walmart continues testing AI, expanding digital shelf labels and keeping employees overseeing pricing.

Walmart will not use artificial intelligence to charge customers different prices based on income, purchase history, urgency or other personal information, President and CEO John Furner said in a Sept. 25 letter. The company also said its shopping tools will not hide cheaper options, with employees overseeing pricing and testing the technology against Walmart's commitments. Walmart will continue using AI, including Sparky, its generative-AI shopping assistant, for search and recommendations. Shares fell about 2.6% to $105.86 around 11:30 a.m. ET Tuesday, putting them 1.58% above GuruFocus' $104.21 GF Value estimate. The pledge comes after Walmart reported its slowest quarterly comparable-sales growth in six years and warned that high gasoline prices were squeezing shoppers, according to Reuters. Walmart is also rolling out digital shelf labels across its stores, allowing centralized price updates to be completed in minutes instead of multiple days. The company's decision leaves investors assessing whether better AI-enabled shopping and inventory decisions can generate enough value to justify the spending without personalized pricing.

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