Walmart Tries to Assuage AI Worries as Tech-Related Layoffs Rise

Walmart is reportedly trying to sell its workers on the benefits of artificial intelligence.

As the Financial Times (FT) reported Sunday (June 7), the retail goliath last week gathered thousands of its employees at its Arkansas headquarters to drive home the message that AI would enhance, and not eliminate, their jobs.

This effort, FT points out, comes amid worries that the technology could make some workers’ jobs obsolete. A recent report from job placement company Challenger, Gray and Christmas found that AI has been the number one reason companies gave for layoffs in the U.S. for the last three months.

And Walmart reportedly cut or moved 1,000 corporate employees last month to bring together its global technology and product teams.

However, executives at Walmart’s annual Associates Week gathering described a future where AI will transform how people work, but not necessarily take their jobs, FT said.

“Technology will power our future. But our associates will lead it.” Donna Morris, Walmart’s chief people officer, told employees. The company also announced that any Walmart staffer in the U.S. can now become certified in the use of OpenAI.

FT noted that Walmart sped up its AI adoption last year when it recruited Instacart executive Daniel Danker to serve as executive vice-president for AI acceleration, product and design. He was paid $44 million last year, more than outgoing Walmart CEO Doug McMillon.

McMillon’s successor John Furner on Friday gave an award to a pair of Walmart engineers who had programmed a “vibe coding” platform being used throughout the company. It allows hourly-wage employees to create code to solve business problems, FT said.

The news comes days after Walmart shareholders rejected a proposal that would have required the company to compile a report on AI/automation’s impact in the workplace.

The proposal presented by United for Respect called on Walmart to explain how it plans to address and measure impact of the technology as it embeds AI across its operations.

“A report describing the principles guiding AI deployment, the metrics used to assess workforce impacts — such as job quality, compensation, training effectiveness, and equity — and the governance structures overseeing these systems would enable shareholders to evaluate whether Walmart’s AI strategy aligns with its public commitments, supports long-term value creation and mitigates workforce-related risks,” the proposal read.

Walmart’s board opposed the idea, arguing the company is committed to managing how AI and automation are deployed and the additional reporting would be unnecessary.

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