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Walmart and Amazon Expand AI Investments to Boost Efficiency | PYMNTS.com

Feb 21, 2025 - pymnts.com
Walmart and Amazon are significantly increasing their investments in AI to enhance efficiency, customer experiences, and business growth. Walmart is expanding its use of AI-powered coding tools, which saved four million developer hours in 2025, and plans to roll these out to all developers in North America and India. The company is also focusing on generative AI to improve customer and associate experiences and is using AI to enhance data hygiene for better search capabilities. Meanwhile, Amazon plans to invest over $100 billion in capital expenditures in 2025, primarily to boost AI capabilities in its AWS cloud division. Despite concerns about declining AI costs affecting revenue, Amazon CEO Andy Jassy believes that lower prices will drive demand for AI services.

Amazon is also focusing on innovation alongside cost reductions, with plans to invest in fast delivery and AI despite undergoing layoffs. The company will shut down its Android app store and Coins program, though the app store will remain functional on Amazon devices. Walmart, on the other hand, is imposing egg purchase limits due to a bird flu outbreak and is partnering with Helios AI to enhance supply chain resilience. Helios’ platform will help Walmart predict climate-related risks and ensure sustainable sourcing, further expanding Walmart's use of AI in supply chain management.

Key takeaways:

  • Walmart and Amazon are heavily investing in AI to enhance efficiency, customer experiences, and business growth, with Walmart focusing on AI-powered coding tools and Amazon investing in AWS AI capabilities.
  • Walmart plans to roll out AI tools to all developers in North America and India, while Amazon is planning $105 billion in capital expenditures for 2025, primarily for AI enhancements.
  • Amazon's retail CEO emphasizes the importance of innovation over cost-cutting, despite significant cost reductions and layoffs, while Walmart is using AI to improve supply chain resilience and data hygiene.
  • Amazon will shut down its Android app store and Coins program, while Walmart imposes egg purchase limits due to a bird flu outbreak and partners with Helios AI for supply chain improvements.
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