Who Wins in the Answer Economy: Walmart or Amazon?
by Pete Blackshaw & Jeff Cail
It’s been said that every generation shops differently than their parents. We moved from the corner butcher to the supermarket, and from there to big-box retail giants like Walmart.
Then came e-commerce, where Amazon redefined convenience, pricing, and speed. Now, we’re staring down the next seismic shift in how we shop: the rise of LLMs—or what we prefer to call “Answer Engines”—smart, responsive digital agents that help us decide what to buy, when, and why.
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Imagine a world where every shopper is greeted by a personal concierge—always available, always learning, always focused on maximizing value for time and money. That’s not science fiction anymore. It’s a retail reality taking shape before our eyes, and Walmart is making sure it has a seat at the table.
Walmart Is Building for a Bot-Driven Future
As recently reported in the The Wall Street Journal, Walmart is developing AI-powered agents that can help customers reorder groceries, respond to prompts like “plan a unicorn-themed party,” and eventually interpret and act on more complex shopping tasks. It’s also preparing for a world where third-party AI agents—like OpenAI s Operator—will shop on consumers’ behalf. “It will be different,” said Hari Vasudev, Walmart U.S. Chief Technology Officer, in the Journal. “Advertising will have to evolve.”
He’s right. Walmart is laying the groundwork for a full-stack retail transformation—rebuilding its platforms not just for people, but for the autonomous, preference-driven agents that increasingly represent them. It’s a bold and necessary move.
As more consumers bring real intent to their interactions—asking “What are the healthiest frozen meals?” or “What’s the best deal on sustainable diapers?”—Walmart’s success will depend on how well its agents can translate that intent into actionable guidance, not just product listings. Done right, it could redefine digital shopping.’
But a current challenge remains: Walmart faces a significant “Answer Divide.” Simple consumer questions typed into the Walmart.com search bar—like “best sunscreen for kids with eczema”—typically yield a dense wall of SKUs, not meaningful guidance. In contrast, large language models like ChatGPT return contextualized responses grounded in relevance, expert insight, and user needs. Bridging that divide will be essential if Walmart wants to lead in this next phase.
Amazon Raises the Stakes
Amazon, meanwhile, is moving aggressively. Its AI assistant Rufus is already reshaping the digital shopping experience. In our recent BrandRank.AI study, 43% of U.S. consumers were aware of Rufus, a remarkable figure for such a new feature. Among actual users, 86% found it helpful, with regular users reporting higher average order values. That’s not just early traction—it’s a glimpse into how AI agents can nudge consumers toward more relevant, trusted, and higher-value outcomes.
And in recent months, Amazon has begun surfacing suggested questions directly within product searches—a subtle but powerful signal that it’s leaning further into conversational commerce. This behavior anticipates consumer needs and positions Amazon not just as efficient, but as intuitive and helpful.
By focusing on genuine utility, Amazon is also strengthening the emotional bond with consumers. When an AI assistant doesn’t just respond but seems to care—offering the right answer at the right time—it shifts from being a tool to being something closer to a friend. Imagine the competitive power of a retail giant with a trustworthy, helpful voice guiding millions of decisions a day.
The New Era of Radical Transparency
Taken together, these developments signal the arrival of radical transparency in retail. With AI agents shaping decisions, shoppers are bringing their values, preferences, and goals into the shopping experience—and expecting frictionless fulfillment in return.
In our study, 38% of consumers said they’d switch brands based on AI recommendations, and 46% said they’d trust health-related alternatives if surfaced by an AI agent. This opens the door for challenger brands and disrupts traditional loyalty models. The brands that align with AI-shaped criteria—value, efficacy, sustainability, trust—will win. The rest may be filtered out before they’re even seen.
What Walmart Must Deliver
To keep pace—and even leapfrog—Walmart must shift from being a product catalog to being a contextual concierge. It must be able to answer as much as it can sell. That requires surfacing meaningful, relevant answers at speed, interpreting real-time intent whether it’s stated or implied, and following up after the sale to reinforce trust and loyalty.
But the opportunity doesn’t stop online. Walmart could gain an edge by integrating its AI shopping assistant in-store, giving customers a real-time “copilot” to navigate aisles, discover savings, and personalize their experience. Imagine asking your phone, “Where’s the gluten-free pasta?” or “Is there a better deal on this in the next aisle?” and getting an instant, helpful response.
It could also link its agent to external data streams—like inventory, promotions, and competitive pricing—to deliver a dynamic, real-time shopping strategy personalized to geography, shopper profile, or seasonal trends. Even if full 1:1 personalization isn’t feasible out of the gate, delivering smarter regional and behavioral customization would represent a major leap forward.
Finally, a Word of Warning—and a Power Shift
Agents are coming. And if your brand isn’t primed to market to algorithms, prepare to lose relevance—and market share. This is not business as usual. It’s the beginning of the Answer Economy, and brands must prepare ASAP.
One last thing to consider: there has long been a debate over who really “owns” the consumer relationship—retailers or manufacturers. The ascent of tools like Rufus may tilt that balance dramatically in favor of retailers, especially as their AI platforms become more useful, trusted, and indispensable in the eyes of shoppers. Brands should take note—retailers are not just intermediaries anymore; they’re becoming the gateway to consumer decisions.
That said, count Walmart out at your peril. It has reinvented itself more than once—from rural disruptor to digital contender—and it brings a deep-rooted, customer-focused culture and unmatched scale. It’s too early to call a winner in this emerging marketplace, but one thing is certain: Walmart is in it for the long haul.
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Pete Blackshaw is CEO of BrandRank.AI and has held digital leadership positions at Nestlé, Nielsen, and Procter & Gamble. Jeff Cail is former President and CEO of Ipsos in US US and held senior leadership positions at Nielsen and its BASES division.