Walmart Considers Adding ‘Sponsored Prompts' to AI Shopping Assistant

Core Insights - Walmart is exploring the integration of advertisements into its AI shopping assistant, Sparky, following a testing phase from September to early November [2] - The potential ad format includes "sponsored prompts" that provide users with answers and click-to-buy options, similar to Amazon's recent updates to its AI assistant, Rufus [2][3] - Amazon's Rufus is linked to 250 million active customers and has shown a 60% increase in purchase completion rates, with projections of over $10 billion in incremental annual sales [3] Group 1 - Walmart's AI assistant, Sparky, was launched in June and is designed to offer recommendations and comprehensive answers to product inquiries [3] - In October, Sparky was enhanced to function as a party planner, generating curated item lists based on user occasions [4] - Google is also testing ad placements within AI chatbot conversations, indicating a broader trend in the industry towards monetizing AI interactions [4] Group 2 - Meta announced plans to utilize user interactions with its AI features to create personalized ads and content starting December 16 [5] - The company aims to tailor ads based on user activity, similar to how its platforms adjust content feeds based on user interactions [6] - Meta emphasizes that user expectations for relevant experiences will extend to interactions with AI, further integrating AI into personalized advertising strategies [6]