Looks like Walmart might have taken a page out of Amazon’s book—literally! At #CES2025, Walmart announced its new GenAI-powered search experience, and it’s already live for iOS customers using the latest version of the Walmart app.

If this feels a bit like Amazon’s AI powerhouse, Rufus, you’re not wrong. But what exactly is this new feature, and why should sellers care? Let’s dive in.
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What Is Walmart’s GenAI Search?

This isn’t your typical search function. Walmart’s GenAI-powered search transforms how customers shop by delivering contextualized and cross-category results.

Instead of typing endless keywords or making multiple searches, you can simply input a use case or question.

For example, instead of manually searching for “blankets,” “heaters,” and “cozy socks,” you can type, “What do I need to survive freezing weather in Austin?”. Walmart’s AI does the heavy lifting, delivering a curated list of relevant products tailored to your needs.
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How Does It Work?

Walmart’s GenAI search uses OpenAI tech (similar to ChatGPT) combined with its proprietary retail data. The AI takes into account:

• Location: To ensure results are relevant to where you live.

• Search History: So recommendations are smarter over time.

• Contextual Insights: Based on your query and shopping habits.

Essentially, this tech simplifies multistep searches into a single seamless experience. Whether you're shopping for a "football watch party" or "birthday gifts for a 6-year-old boy," the AI provides personalized recommendations across categories.
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Why Should Sellers Care?

This is where things get exciting—and a bit challenging—for sellers.

1. Contextual Optimization Is Critical

Like Amazon’s AI, Walmart’s GenAI prioritizes results aligning with customer use cases. If your product listings aren’t optimized with relevant keywords, clear descriptions, and compelling images, you risk being left out of these curated results.

2. Ad Placement in AI Results

Interestingly, some of the search results are marked as ads. This opens up questions about how ads are triggered within Walmart’s GenAI model. Sellers who figure out how to leverage this feature early will have a significant advantage.

3. A Shift Toward Cross-Category Selling

Walmart’s AI doesn’t just pull up items from one category. It’s connecting the dots across multiple categories, which means sellers have the opportunity to reach customers they might not have targeted traditionally. If your product fits into a broader use case (think “camping trip” or “holiday hosting”), you’re in luck.
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A Seller’s To-Do List

With Walmart’s GenAI search now live, sellers must improve their game. Here’s how you can prepare:

• Optimize Your Listings: Ensure your product titles, descriptions, and images are tailored to specific use cases.

• Experiment with Ads: Test how ads perform within this new search format and adjust your strategies accordingly.

• Focus on Context: Think about how your product fits broader customer needs and optimize accordingly.
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My Experience with Walmart’s GenAI Search

I put this new feature to the test. I asked, “What do I need to survive the freeze?” And just like magic, Walmart’s AI served up a curated list of blankets, heaters, and everything else to keep me cozy. It’s intuitive, efficient, and honestly, kind of addictive.

This new feature signals a big shift in how customers shop and sellers compete. Walmart’s GenAI search is more than just a convenience; it’s a powerful tool that reshapes product discovery. For sellers, this means one thing: contextual optimization isn’t optional anymore—it’s essential.

With GenAI search, Walmart is following in Amazon’s footsteps, but it’s also carving its own path. Whether you’re an experienced seller or starting out, this is the time to understand the changing landscape and adapt your strategies.

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