The New Storefront Is the AI Conversation

Retail is getting a first-principles upgrade at the hands, or lack of them, of artificial intelligence.

The shopping transformation looks less like a better eCommerce search bar and more like something out of science fiction. It’s a bot-filled operating layer that autonomously mediates between consumer intent and transaction execution.

Headlines this week from Amazon and Walmart underscore that AI shopping and its next-generation cousin, agentic commerce, are moving retail innovation from customer convenience to discovery programmability.

Amazon, for example, used Alexa for Shopping to help consumers find Prime Day deals, compare products, track prices, set deal alerts and automatically buy items when they hit a target price. Walmart and Google, meanwhile, connected Gemini’s conversational interface to Walmart and Sam’s Club products, store inventory, membership benefits, account history and fulfillment options.

The next retail platform shift may not be about better search, faster delivery or lower prices. It may be about which company can make its inventory, loyalty logic, payments and fulfillment promises readable to AI agents before a shopper ever opens a cart.

See also: Amazon and Walmart’s Summer Sale Wars Deliver a Win (With An Asterisk)

AI Is Shifting Retail Competition to Before the Cart Even Exists

For decades, retailers optimized for physical shelves, Google search results, Amazon marketplace ranking, mobile apps and social feeds. AI shopping changes the surface. A consumer may not search “paper towels” or “headphones.” They may ask a question.

“What do I need for a backyard party?”

“How do I cut my weekly grocery bill?”

“What should I buy before a trip with kids?”

Those prompts are not SKUs. They are situations.

The PYMNTS Intelligence report “The Basket Breakaway: How Amazon Is Turning Walmart’s Store Traffic Into a Retail Weakness” put hard numbers around retail’s ongoing shift. As of the first quarter of 2026, Amazon held 9.3% of U.S. consumer retail spending, up from 8.6% a year earlier, while Walmart held 7.8%, unchanged from the prior year. Amazon led in four out of seven major retail categories, including sporting and hobby goods, music and books, electronics and appliances, furniture and home furnishings, and clothing and apparel. Walmart’s strength remained concentrated in food and beverages and auto parts.

Amazon’s AI shopping push is built around a closed-loop advantage. Alexa for Shopping can help consumers discover deals, compare products, track price history, set alerts and automatically buy an item when it reaches a customer’s target price. That last feature is the signal. Auto-buy turns a shopper’s preference into an executable rule.

Walmart’s move with Google points in a different direction. The Walmart-Gemini integration is designed to surface Walmart and Sam’s Club products when relevant inside a conversational AI experience. Customers can encounter items during a back-and-forth conversation, with linked accounts bringing in purchase history, membership benefits, local availability and delivery options.

Amazon wants the assistant to become the cart. Walmart wants its retail network to be visible wherever consumer intent begins. That distinction matters.

Amazon’s model is vertically integrated with assistant, marketplace, Prime, payments credential, fulfillment, reviews, ads and post-purchase service. Walmart’s model is becoming more distributed with stores, clubs, grocery, local inventory, Walmart+, Sam’s Club and third-party AI discovery.

The retail shelf is becoming an API.

Read also: Amazon and Walmart Battle to Become Retail’s Most Powerful Data Broker

Agentic Shopping Makes the Evidence Trail More Important

When a purchase starts inside an AI conversation or is agentically handled at one or all legs of the shopper journey, that creates a new kind of retail infrastructure problem. Product data must answer questions, not just populate product pages. Inventory has to be local and current, substitution rules have to be clear, and offers have to be explainable. Loyalty benefits must be portable, while payments have to support transactions that begin in conversation and end in a retailer-controlled checkout.

That is not back-office trivia. It affects disputes, chargebacks, fraud claims, returns, marketplace accountability and regulatory scrutiny.

Amazon’s edge:

If consumers let Alexa monitor prices, replenish staples or execute purchases based on pre-set rules, Amazon captures intent before the transaction exists. The cart becomes less important than the instruction.

Walmart’s edge:

If Gemini can understand Walmart’s store inventory, club pricing, grocery availability, delivery speed and membership benefits, Walmart can win situational commerce, including dinner tonight, household stock-up, event shopping, pharmacy runs and urgent replenishment.

The risks:

Amazon’s closed loop may be less portable if consumers start more shopping journeys in third-party AI environments.

Walmart could become the fulfillment endpoint while Google owns the discovery layer.

PYMNTS Intelligence data showed that 47% of eCommerce shoppers used AI during their latest purchase. ChatGPT’s share as a product research tool climbed from 2% to 30% in two years, the same data showed.

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