When a shopper buys a bottle of sunscreen at the last minute at a Walmart self-checkout or receives same-day delivery Amazonthey operate a rapid, AI-powered supply chain designed to move goods quickly, reduce waste, and keep shelves stocked. The goal is simple: provide the right product to the right customer, as efficiently as possible.
In an era of tariffs, labor shortages and global uncertainty, this mission has never been more crucial. According to a recent Nvidia According to the survey, businesses are feeling the pressure, with 59% of respondents saying their supply chain challenges have increased over the past year. More companies are turning to AI to address these challenges: 82% plan to increase their spending on AI-enabled supply chain tools in the next fiscal year.
Last week, Walmart, the world’s largest retailer, announced that it had revamped its global supply chain using real-time AI systems. First deployed in the United States, the technology is now available in markets including Costa Rica, Mexico and Canada. These tools help track consumer trends, design product assortments, forecast demand, move inventory to areas of greatest need, and reduce overstocks. According to Walmart, projects that once took months can now be completed in weeks.
For example, Walmart has developed a system called Trend‑to‑Product, an AI-driven, multi-agent engine that tracks trends (using social media, search data, etc.), generates mood boards and product concepts, and feeds them directly into prototyping and procurement processes.
“At this scale, the only way to move faster is to act smarter,” Vinod Bidarkoppa, chief technology officer at Walmart International, said in a blog post. “We create systems that turn real-time signals into real-time actions, freeing up associates and meeting customer expectations. »
Walmart’s main competitor, Amazon, has also highlighted its AI-powered supply chain advancements. At the company’s 2024 re:Invent event, CEO Andy Jassy spoke at length about how continuous supply chain improvement can save pennies per package, which adds up to billions of dollars at scale.
Last month, Amazon common a blog post showcasing significant new investments in AI applications that solve global supply chain logistics challenges: Wellspring, an AI generative mapping technology; an AI-driven demand forecasting model that powers Amazon’s supply chain; and new robotic capabilities using agentic AI systems.
“While these systems operate behind the scenes, customers will certainly experience their benefits: more precise delivery locations, faster shipping options, and improved availability of the products they want, when they want them,” the blog post states.
From prediction to full AI automation
Retailers have been modernizing their supply chains for more than a decade with tools like cloud-based software, AI analytics and connected sensors. These technologies have helped them plan more accurately, track moving inventory, and improve order accuracy.
This surge accelerated during the COVID-19 pandemic, as shortages, spikes in demand and supply chain disruptions forced businesses to adapt. Services like same-day delivery and buy online pick up in store (BOPIS) went from convenience to must-have, and they’ve been part of the baseline ever since.
But the current wave of AI deployment is different, said Manish Kapoor, founder and CEO of Growth Catalyst Group. Earlier systems were useful but largely reactive, relying on historical data for forecasting or route planning.
“Now AI operates in real time with predictive and even prescriptive capabilities,” Kapoor said. “These systems can automate operations, reroute shipments on the fly, rebalance inventory across locations, flag supplier risks before they cause disruptions, and even support automated checkout in stores. »
According to Venky Veeraraghavan, product director of AI platform DataRobot, the next step forward is the rise of agentic AI, systems that can perform complex tasks with minimal human involvement.
“The rise of agentic AI provides a tremendous opportunity to increase productivity,” he said. “Planners can trigger tasks using natural language and receive guided analytics, proactive insights, and automatic problem identification. This new generation of AI can coordinate automation across the entire supply chain in a way that was not possible before.”
The result? More efficient planning, fewer silos between departments, better use of working capital and much less waste.
“AI is reshaping supply chains, and some of the most transformative use cases are coming from AI agent systems,” said Garth Hoff, director of industry strategy at Pricefx. “AI has become an indispensable tool in inventory forecasting and planning. With pricing, timing is everything: if you are overstocked or under-forecasting demand, you experience a direct impact on margins. AI helps brands detect changes in demand earlier and simulate the impact of different supply or pricing scenarios on costs.”
Albertson now moves products to store shelves 15% faster
For Albertsons, one of the largest food and drug retailers in the United States with more than 2,200 stores in 35 states, AI is used not only for forecasting and optimization, but also to reimagine how stores interact with the supply chain in real time.
Chandrakanth Puligundla, technical manager and data analyst at Albertsons, gave an example of how the retailer is using AI to help allocate store labor for receiving and replenishment.
“Models predicting daily inbound shipment volumes were built to match available store labor,” he explained. “This match ensures teams have the right staff to handle all deliveries without overstaffing or delays. » Albertsons now moves products from the loading dock to store shelves approximately 15% faster during peak shopping periods.
A new trend, he added, is the use of AI to analyze unstructured information from suppliers, such as emails and PDFs. This technology extracts key details about delivery changes, risks and commitments, helping procurement teams avoid issues often overlooked by traditional systems.
“In retail supply chains, AI excels at clarifying complexity, enabling frontline teams to respond quickly and efficiently,” he said.