Walmart Inc. (NYSE:WMT) is quietly testing ads inside its new artificial intelligence shopping agent, Sparky — signaling a future where chatbot-powered recommendations become a major money-maker for online retail.
The retailer has been quietly experimenting with new ad formats alongside select advertisers.
One format, called "Sponsored Prompt," has already been tested in Sparky, which Walmart added to its mobile app in June, the Wall Street Journal reported, citing unnamed sources familiar with the matter.
Also Read: Amazon Expands AI Shopping Assistant Rufus to All US Customers As Prime Day Approaches
Sparky works like ChatGPT. It summarizes product reviews, compares items, and suggests options for specific needs or events.
Walmart stock has gained over 19% year-to-date.
The company delivered stronger-than-expected third-quarter results last week, reporting adjusted EPS of 62 cents versus the Street's 60-cent estimate and revenue of $179.50 billion, topping the $177.429 billion consensus.
Walmart raised its 2026 adjusted EPS outlook to $2.58–$2.63, above its prior range $2.52–$2.62 and the $2.61 analyst consensus midpoint. The retailer boosted its fiscal 2026 constant-currency revenue growth forecast to 4.8%–5.1% up from the prior range of 3.75%–4.75%.
Walmart will shift its stock listing to the Nasdaq on December 9, 2025, while retaining the "WMT" ticker.
AI Strategy and Sponsored Prompt Tests
Walmart is using the tool to protect its dominant position as AI-driven, autonomous shopping agents begin changing consumer behavior.
The Sponsored Prompt feature drives brand engagement and personalized recommendations through Sparky conversations, the WSJ cited from a company presentation.
During testing, Walmart displayed a Sponsored Prompt on Walmart.com. When users clicked on it, Sparky replied with an answer, followed by a click-to-buy ad for a featured product.
However, engagement and click-through rates in Walmart's Sparky pilot remained low, sources told the WSJ.
Retail Industry Shift Toward AI-Driven Commerce
Retailers see an opportunity to increase online sales by pairing AI-generated guidance with detailed product data and insights on shopper preferences.
U.S. consumers could spend over $1.27 trillion online this year, up nearly 17% from 2024, per eMarketer.
Walmart has also tapped OpenAI so U.S. ChatGPT users can soon buy Walmart products directly in the chatbot.
The company is doubling down on its high-margin advertising business as grocery sales—historically low-margin—continue to dominate U.S. revenue.
Competitors are moving aggressively, too. Amazon.com Inc. (NASDAQ:AMZN) introduced Sponsored Prompts inside its own AI chatbot, Rufus, which has 250 million active customers this year.
Price Action: WMT stock were trading higher by 0.78% to $107.83 at last check Wednesday.
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