U.S. retail giant Walmart (WMT) has claimed that it is saving more than $20 million every year by using its AI customer translation program.
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Excuse-moi?
Language Learning
Yes, the Walmart Translation Platform or WTP began in 2022 with a Spanish search service helping speakers of that language understand all those product descriptions, news of promotions and how to order and pay online and on the company’s apps.
Sounds simple enough, but Walmart stresses that its services go beyond literal translation to “understand intent in context.”
For example, a customer types in the search bar a product or an item they want to find, but they type it in Spanish. Sometimes it can be a Spanish dialect from Colombia, a Spanish dialect from Mexico, or Puerto Rico or Chile — different variations for different nationalities.
“So what we do is we adapt that local Spanish, that particular dialect, to the catalog in English so a user gets the best possible experience. We translate their intent, to get them what they want,” said Arpitha Shetty, director of localization, content and accessibility at Walmart International. “Sometimes, things that sound simple actually aren’t. Such is the case in translating the humble t-shirt. In Spanish, you might say camiseta, and expect it to be widely understood. In Mexico, people are likely to say playera, while in Chile you’re more likely to hear polera. Each a different word for the same thing.”
AI Push
Walmart said that the WTP understands every one of these nuances and maps the variations back to the same entry, so customers find what they’re looking for — no matter where they’re searching from.
“Every one of these instances was flagged by an AI agent, raised to a linguist and re-translated properly,” Walmart said. “Then, the linguist worked with data science and computer engineering teams to instruct Walmart’s in-house AI how to stop it from happening again.”
Walmart said that the new agentic-AI system costs around 1% of the previous system and saves over $20 million every year.
It is part of Walmart’s AI push which includes the launch of its AI agent Sparky this year. Customers can access it via a smiling ‘Ask Sparky’ button in the Walmart app. The new system helps customers search for items, synthesize reviews and helps them to “prepare for any occasion.”
This could include finding the right top to wear for a particular celebration or the perfect toy for a nephew’s birthday.
It is why technology and innovation are seen as key risks for companies and their investors – see below:
Analysts at Bank of America this week highlighted opportunities for the group in “agent-based” or AI-enhanced e-commerce, an area in which it said Walmart is well-positioned to be a leader.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $127. WMT stock’s consensus price target is $114.07, implying a 9.96% upside.
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