Walmart Patent Signals AI Transformation for Bricks-and-Mortar Retail

As big box stores start to give themselves tech makeovers, Walmart may have its sights set on artificial intelligence IP. 

The retailer is seeking to patent a system for “supply chain modeling and prediction,” relying on machine learning to keep track of all the moving parts within its sprawling and complex logistics operations. Walmart’s tech seeks to predict and adapt to real-time changes that may impact the entire operation, addressing limitations in available tools.

“Existing simulation tools are all limited to some specific sub-tasks in supply chain operations, are not adaptive to real-time data and lack the ability to capture the dynamic nature of supply chain operations,” Walmart said in the filing. 

When Walmart’s model receives a query, such as “what happens if a distribution center is shut down for two days,” the model will use historical data to build a graph representing the different factors within the supply chain that may be impacted, including suppliers, warehouses and transportation routes. 

The model, taking into account the interdependencies of the operation, will use that to generate predictions like inventory impacts, delivery time changes, bottlenecks and costs. This could allow Walmart to consider the domino effects of different incidents from warehouse to delivery to store. 

This isn’t the first time that Walmart has displayed an interest in AI. The company has spent the past few years bolstering its tech portfolio, with patent applications including recommendation engines, AI analytics and churn prediction. And the retailer’s tech overhaul is one indicator of a broader trend: Traditionally brick-and-mortar institutions, both in retail and food service, have started to work towards adding AI into their tech stacks. 

For Walmart in particular, the shift makes sense. Its biggest competitor has long been Amazon. And while it’d be hard pressed to compete with the tech giant’s AI prowess, developing and adopting its own models – and claiming IP as it does so – couldn’t hurt.