Walmart Shifts AI Shopping Strategy, Ditching OpenAI Checkout for Sparky Integration

Walmart is recalibrating its approach to AI-powered shopping, moving away from OpenAI’s Instant Checkout feature and instead integrating its own chatbot, Sparky, directly into both ChatGPT and Google Gemini. This strategic shift comes after disappointing sales figures for Instant Checkout, signaling a potential setback for the initial vision of agentic commerce.

Instant Checkout Falls Short

Launched in November, OpenAI’s Instant Checkout allowed ChatGPT users to purchase approximately 200,000 Walmart products without leaving the chatbot interface. However, conversion rates for these in-chat purchases were significantly lower – three times lower – than those for transactions where users clicked through to Walmart’s website, according to Daniel Danker, Walmart’s EVP of product and design. [Wired]

Danker described the Instant Checkout experience as “unsatisfying” and confirmed Walmart’s decision to move away from the feature. [Wired] This decision aligns with OpenAI’s recent announcement to phase out Instant Checkout in favor of app-based checkout handled directly by merchants. [Wired]

Sparky Takes Center Stage

Walmart’s new strategy centers around embedding Sparky, its proprietary chatbot, within ChatGPT and Google Gemini. Users will now log into Walmart and synchronize their carts across platforms, completing purchases within Walmart’s established system. [TechBuzz] This approach aims to address the shortcomings of Instant Checkout by giving Walmart greater control over the customer experience and data. [TechBuzz]

A Shift in AI Partnership Dynamics

This move represents a significant shift in how retailers are approaching AI partnerships. Rather than ceding control of the checkout process to AI platforms, Walmart is prioritizing ownership of its customer data and shopping experience even as still leveraging the extensive user bases of ChatGPT and Gemini – combined exceeding 300 million users. [TechBuzz]

The initial partnership with OpenAI, announced in October 2025, aimed to create AI-first shopping experiences, allowing customers to shop Walmart through ChatGPT using Instant Checkout. [Walmart Corporate] Walmart’s CEO, Doug McMillon, envisioned a future of “agentic commerce” where AI proactively anticipates customer needs. [Walmart Corporate]

Implications for Agentic Commerce

The underperformance of Instant Checkout suggests that the widespread adoption of agentic commerce – where AI agents autonomously handle purchases – may be further off than initially anticipated. Sending users to established retail environments, like Walmart’s website, continues to drive higher conversion rates. [Wired]

Walmart’s decision to prioritize its own chatbot integration could set a precedent for other enterprise brands seeking to navigate AI partnerships, emphasizing the importance of retaining control over the customer relationship and data. [TechBuzz]