Live · 7am IST · DailyFeatured
Reel

The ShiftMaker

AI Intelligence Daily
Featured

Walmart and AI checkout face old-school scepticism despite high-tech promise

India's market shows mixed adoption, with 13 average touch points for AI users. Morgan Stanley's 2025 report highlights 60 billion product listings in AI-driven shopping. Indian builders remain cautious about agentic checkout systems.

Published 18 August 2026 · ID 2026-08-18-walmart-and-ai-checkout-face-old-school-scepticism-despite-high-tech-promise

Walmart and other retailers are exploring AI-driven checkout systems, but widespread adoption remains elusive. The technology, which promises seamless, agentic shopping experiences, faces resistance from both consumers and merchants. OpenAI's initial foray into AI checkouts was short-lived, as the company found that user and merchant adoption were not aligned with the technology's potential.

The global ecommerce market is increasingly shaped by AI, but the transition is not without friction. In India, Google launched AI-powered shopping in April 2025, integrating more than 60 billion updated product listings into its search platform. Despite these advancements, the technology has not yet fully captured the trust of Indian consumers or retailers.

According to a December 2025 report from Morgan Stanley, Indian shoppers who use AI in their purchase journey interact with 13 touch points on average, compared to just 5.5 for those who do not. This suggests a more complex and fragmented user experience, which may contribute to the reluctance of both consumers and merchants to fully embrace AI checkouts.

In India, Flipkart and other major retailers are cautious about integrating agentic checkout systems. While the technology offers potential benefits, such as reduced friction in the purchasing process, concerns about data privacy, security, and user trust remain significant barriers. Indian builders are evaluating the long-term implications of AI checkouts, particularly in terms of customer retention and merchant collaboration.

The path forward for AI checkouts in India and globally remains uncertain. While the technology has the potential to revolutionise the shopping experience, it must first overcome deep-seated scepticism. Retailers and tech companies will need to address consumer concerns and demonstrate the value of agentic checkouts before widespread adoption can be achieved.

Sources

Share on X Share on LinkedIn