Tariff pressures are affecting the retail and eCommerce sectors, prompting industry giants Walmart and Amazon to respond by investing heavily in technology to boost operational efficiency and explore new markets amid ongoing uncertainty. Artificial intelligence (AI) is central to both companies' strategies. Amazon focuses on enhancing customer engagement and automating processes, while Walmart uses AI to improve merchant efficiency and product sourcing. Additionally, Amazon's privacy changes concerning its smart devices highlight the ongoing discussion about consumer data rights in an AI-centered landscape. Both companies are entering new market spaces. Walmart has expanded into freight services with a new brokerage program designed to enhance logistics and compete with Amazon. The program requires carriers to meet specific criteria, allowing Walmart to build an ecosystem attractive to third-party sellers and logistics partners.

Meanwhile, Amazon is reportedly considering selling both new and used cars, which could disrupt traditional dealerships by offering a streamlined, digital car-buying experience through its logistics network. Additionally, Walmart plans to open or remodel over 45 fuel stations, increasing the total to 450 across 34 states by year-end. AI is a critical competitive advantage for both retailers. Walmart introduced "Wally, " a generative AI assistant that helps merchants source products and analyze performance data, creating operational efficiencies. According to a recent report, 77% of business leaders see generative AI as a transformative force in the retail sector. Meanwhile, Amazon unveiled enhancements to its customer service tools and announced that its Alexa voice assistant will begin processing all interactions in the cloud, enabling new generative AI features while raising privacy concerns.