The Surprising Way Artificial Intelligence (AI) Chatbots Are Giving Walmart's Business a Boost
Key Points
According to a UBS analysis, Walmart is often the "default answer" for shopping-related AI queries.
More than one-third of consumers would be very willing to use AI for gift recommendations for the holidays, based on a recent survey.
Walmart's stock is expensive given its modest growth rate, and a boost from AI, while helpful, may not drastically change that.
More and more people are turning to artificial intelligence (AI) chatbots in search of not only answers to queries, but also shopping recommendations. And one thing that analysts have uncovered is that chatbots really like Walmart (NASDAQ:WMT), with it often being the go-to recommendation.
The company may benefit from this trend, and it could prove to be an underrated catalyst for the retail stock.
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Being the preferred retailer among AI chatbots could unlock more growth for Walmart
AI chatbots can make researching product decisions much quicker and easier for consumers. Increasingly, shoppers are becoming comfortable relying on them for advice on what to buy and where to buy it.
According to a recent survey by Gartner, approximately 34% of consumers in the U.S. would be very willing to use AI to get recommendations for holiday gift purchases. And that’s potentially great news for Walmart, as chatbots appear to gravitate toward it.
Analysts at UBS studied AI tools and found that Walmart was often the "default answer for everyday consumption.” It’s important to remember, however, that AI models evolve over time, and while Walmart may appear to be the preferred option today, it doesn't mean that it will remain the case several months from now.
It does, however, reinforce the strong brand that Walmart has built up over the years, which many consumers and now AI chatbots as well recognize as being synonymous with value.
Walmart's stock could use a boost, but AI chatbots might not offer enough of a spark
Thus far in 2026, Walmart's stock has generated underwhelming returns, up around just 2% and trailing the broader market. The challenge these days is that it's become too expensive over the years, and the stock now trades at more than 40 times its trailing earnings. For Walmart to remain a compelling buy at that level, its growth rate needs to be well into double digits, which it isn’t.
While AI chatbots may help drive more traffic to its stores, I don't think it'll be enough to drastically boost Walmart’s sales and profit numbers. The company has generated more than $730 billion in revenue over the trailing 12 months; it'll take a lot of additional revenue to meaningfully impact its growth rate.
Walmart's stock is expensive, but for investors who are looking to hang on for several years, potentially decades, the good news is that it can make for a solid investment to buy and hold, as it still has plenty of growth opportunities to tap into over the long haul.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.