Walmart is offering up a long-overdue example of the ways artificial intelligence can boost productivity for companies during a turbulent time for the favored market trade. "WMT made a powerful statement on Generative AI and how it is speeding up critical workstreams and saving the organization money," wrote analyst Morgan Stanley analyst Simeon Gutman in a note. "It was one of the most direct proof points of Gen AI we have heard across all of retail.
" In a conference call this week on the heels of a strong quarterly print , the retailer signaled that AI tools have helped it boost productivity and improve its product catalog. "We've used multiple large language models to accurately create or improve over 850 million pieces of data and the catalog," said CEO Doug McMillon. "Without the use of generative AI, this work would have required nearly 100 times the current headcount to complete and the same amount of time.
" The commentary from Walmart comes amid a volatile patch for some of 2024's leading AI names. Many favored AI stocks hit a snag earlier this month as investors fretted over the payoff for long-term spending. Recession fears, an unwind in the "carry trade" and overall profit-taking have also contributed to recent turbulence.
But this week, the sector roared back, with Nvidia and Super Micro Computer rallying 19% and 25%, respectively. Microsoft is on pace for a 3% gain, while Meta Platforms is up 2% and on track for three straight weeks of gains. Advanced Micro Devic.