Since artificial intelligence (AI) was first introduced, it has revolutionized retail sectors in various ways. From Walmart’s digital surveillance systems to Amazon’s e-commerce platform to restaurant ordering systems to fashion recommendations, headlines about the contributions of AI seem to be everywhere. But another, often overlooked aspect of this conversation is the integration of AI into supply-side operations. Large retailers in particular continue to develop new, AI-enhanced tools to ensure their advantages.

Perhaps unsurprisingly, Walmart is one of the retailers leading the charge. Its Pactum system is widely integrated into its suppliers’ logistics, and reports indicate that the use of this system has helped all the parties in the supply chain reduce delays. But even companies that are not worldwide conglomerates can pursue such benefits, by contracting with independent AI service providers to apply their advanced software in their own systems and thereby predict and manage shipping interruptions.

When integrated into customer service models and predictive software, AI tools also can enable firms to provide live delivery updates to their customers, streamline inventory operations, anticipate shortages, and adjust purchasing orders accordingly. Even with regard to existing stock, the technology offers efficiency benefits. Amazon’s AI-enabled robot fleets sort and inspect packages before their shipment, for example.

These diverse applications have meaningful financial impacts too. On average, domestic U.S. businesses spend around $400,000 to optimize or integrate AI into their operations. Of course, that number represents an average. The largest retailers spend many times that amount, whereas small, independent firms might struggle to come up with a fraction of that cost to devote to advanced technologies—assuming their systems are already sophisticated enough to support such integration.

But implementing these technologies can be literally lifechanging. Warehouse staff describe diminished busywork, in favor of more highly skilled roles. Safety measures informed by AI insights can protect workers from various threats. But considering that such implementations are more accessible and common among well-resourced, large-scale businesses, they also might widen existing disparities with smaller sellers, which constitutes a different kind of safety risk.

Discussion Questions

1. Have you experienced AI during customer service interactions? Did the tools help address the problem more efficiently?
2. What might real-time updates based on predictive software be helpful for consumers? Retailers? Logistics service providers?

Sources: Dennis Mitzner, “AI Is Transforming E-Commerce Logistics: Reducing Disruptions and Building Trust,” Forbes, March 6, 2025; “How AI Can Transform Intralogistics,” Logistics Business, October 31, 2023; Tatiana Walk-Morris, “Online Retailers in the US Spent an Average of $400k on AI Last Year,” Retail Dive, April 29, 2025.