Walmart will integrate artificial intelligence (AI) technology to predict prices of perishable products. The company has signed a partnership with Helios AI, a platform specializing in climate risk analysis and price forecasting in the agri-food sector.
This collaboration will enable Walmart to assess medium- and long-term climate threats, ensuring a more sustainable and secure supply.
What is Helios AI?
Helios AI became the first software company to win the prestigious “golden ticket” at the 11th Walmart Open Call in Bentonville, Arkansas, in September 2024. This annual event brings together more than 500 entrepreneurs presenting their solutions in hopes of securing a place in Walmart’s 4,600 supermarkets in the United States and its digital marketplace.
Helios AI’s technology allows for forecasting the availability and prices of agricultural products based on climate risks. By leveraging this system, Walmart will be able to manage the supply of thousands of fresh product SKUs, ensuring cost stability and reducing the impact of climate volatility on its inventory.
What will Helios AI offer Walmart?
Along with the partnership with Walmart, Helios AI has implemented a series of improvements in its platform designed for agri-food procurement teams and supply chain managers. These include:
- Climate projections of up to one year to improve price and availability forecasting.
- Access to historical price data for fruits and vegetables, with analysis by region, variety, grade, and organic status.
- Customization of key performance indicators (KPIs) and charts, with analysis windows ranging from one month to two years.
- Specific metrics for cultivation areas, such as the number of days with extreme temperatures or heavy precipitation.
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Why is Walmart betting on artificial intelligence for pricing?
Walmart’s decision to incorporate AI in pricing aligns with its sustainability strategy and supply chain optimization.
Climate fluctuation is a critical factor in food production. The USDA estimates that 30% of food loss occurs during production and harvesting, with unforeseen weather events as a key contributor to these losses. By adopting Helios AI technology, Walmart will be able to make strategic decisions to minimize waste and improve operational efficiency.
How will AI impact prices at Walmart?
Thanks to the integration of Helios AI, Walmart will be able to anticipate changes in production costs and adjust its prices based on climate forecasts.
Additionally, Walmart continues to explore other technological solutions in its journey toward regeneration and sustainability. In collaboration with the company Agritask, it has already tested technology to monitor crops in real time and improve decision-making in fruit procurement.
Walmart statistics in the United States
- Walmart is the world’s largest retailer, with a strong presence in the United States. In the fiscal year 2024, Walmart generated net sales of approximately $441.82 billion in the U.S., a significant increase from previous years.
- The Walmart U.S. division is the strongest in terms of revenue, representing about 69% of the company’s total net sales.
- In terms of operational data, Walmart had 4,615 stores in the United States as of January 31, 2024, including 3,560 supercenters and 695 smaller stores.
- Grocery sales accounted for 59.8% of Walmart U.S.’s net sales in the fiscal year 2024.
- Financially, Walmart’s operating profit in the U.S. was approximately $20.62 billion in 2023.
- The company has maintained a stable gross profit margin between 23% and 25% in recent years.
SOURCE: Statista
