Sparky is driving up sales at a major retailer. Walmart’s AI chatbot—named after the company’s yellow logo—is increasing shopper spending, company executives revealed Thursday. Approximately half of Walmart (WMT) app users have engaged with the 20-month-old tool, CFO John David Rainey stated on a conference call discussing the company’s fourth-quarter results. Those who interact with Sparky tend to place orders about 35% larger on average. “Simply put, Sparky is helping customers find the things they need, ” Rainey said, according to a transcript provided by AlphaSense. “It’s strengthening our digital unit economics as it scales. ” Walmart intends to enhance Sparky’s capabilities and roll out the tool internationally. The company is also partnering with Alphabet’s Google (GOOG) and OpenAI to make Walmart products readily accessible to users of their AI chatbots—Gemini and ChatGPT—which source information from multiple platforms and sites.

Recently valued near $1 trillion, Walmart aims to position itself in investors’ eyes not only as a retail leader but also as a tech powerhouse, having recently joined the Nasdaq 100 index, recognized as a technology stock benchmark. “We’re approaching AI development through partnerships, ” Rainey explained. “This allows tech companies to focus on creating innovative technologies, while enabling us to specialize in integrating the best of tech into retail experiences. ” Additional technological advancements, such as automation in distribution centers and e-commerce facilities, are expected to improve productivity, Rainey said. These factors are incorporated into Walmart’s projection of a 3. 5% to 4. 5% year-over-year sales increase for the upcoming year. This forecast factors in a “somewhat unstable” environment, reflecting concerns about restricted hiring, student loan delinquencies, and low consumer confidence, he added. CEO John Furner noted that consumers might see benefits from larger tax refunds but described shoppers as still “choiceful”—many are aiming to save but willing to pay for delivery convenience. Households earning $50, 000 or less annually are experiencing “some stress, ” Furner said. “We continue to observe stretched wallets and, in some cases, people managing spending paycheck to paycheck, ” Furner added, according to the transcript.