Amazon and Walmart Go Head-to-Head Over Logistics and AI

Tariff pressures are squeezing the retail and eCommerce sectors. What are the two behemoths dominating the space, Walmart and Amazon, doing in response?

The answer, according to the news this week, is doubling down on technology to enhance operational efficiency and making calculated moves to capture new markets in the face of ongoing uncertainty.

Artificial intelligence (AI) is shaping the future of both companies. Amazon is focusing on customer engagement and automation while Walmart leverages AI for merchant efficiency and product sourcing. Meanwhile, Amazon’s privacy changes in its smart device lineup underscore the broader debate surrounding consumer data rights in an AI-driven world.

At the same time, the companies’ maneuvers into new marketplaces, like Walmart’s deeper expansion into freight services and Amazon’s move into used cars, continue to illustrate the evolving nature of retail.

As both companies introduce disruptive technologies and services across their respective landscapes, the implications for other businesses and consumers alike are profound.

Read also: The Year in Amazon vs Walmart, and a Look Into 2025

Can Retail Giants Win in the Automotive and Transport Space?

Deepening a commitment made over the summer to expand into freight services, Walmart recently announced a brokerage program to enhance its logistics capabilities and compete more effectively with Amazon.

According to a Wednesday (March 19) report, to qualify, carriers must meet requirements including operating over 10 but under 1,000 trucks, maintaining at least five consecutive years of operating authority and carrying $1 million in liability insurance and $100,000 in cargo insurance, among other requirements.

Walmart’s internal infrastructure and private trucking fleet is one of the largest in North America, and the company’s entry into brokerage could establish an attractive ecosystem for third-party sellers and other logistics and fulfilment stakeholders.

Another intriguing development this week was the reported interest Amazon is showing in the auto market. On Tuesday (March 18), news broke that the eCommerce giant is eyeing helping dealers sell used cars, as well as new ones. If Amazon moves forward with plans to sell used vehicles, it could radically disrupt traditional car dealerships and online platforms such as Carvana. With its extensive logistics network, Amazon could create a streamlined, digital-first car-buying experience that challenges industry norms.

Also on the car front, Walmart said Wednesday that it will open or remodel more than 45 fuel stations this year. By the end of the year, the retailer will have more than 450 Walmart Fuel and Convenience stations operating across 34 states.

AI Is the Next Competitive Edge for Retailers

Artificial intelligence has become the battleground for corporate supremacy, with both Amazon and Walmart deploying AI to refine their customer service, logistics and business operations.

Walmart on Tuesday debuted a generative AI-powered assistant to help its merchants source items for its shelves and its online store. Dubbed “Wally,” the AI assistant generates insights from complex datasets, diagnoses why products are underperforming or overperforming, answers operational questions, raises tickets for unresolved issues and automates complex formulas and predictions, the company said.

Across consumer and retail companies, 77% of business leaders rank GenAI as the most impactful emerging economy, according to the PYMNTS Intelligence and AI-ID collaboration, “What Generative AI Has in Store for the Retail Industry.”

Also on Tuesday, Amazon announced the next generation of Amazon Connect, launching AI-powered interactions that can help strengthen customer relationships and improve business outcomes.

Amazon also announced that starting March 28, its voice assistant Alexa will process all voice interactions in the cloud to enable new generative AI capabilities, meaning users can no longer prevent their voice recordings from being transmitted to Amazon’s servers.

On the legal front, Amazon on Monday (March 17) scored a victory with the dismissal of a class-action lawsuit that accused the company of misleading shareholders regarding its pricing and logistics strategies.