For a company with over 10,500 stores in 19 countries, staying ahead requires a strategic blend of innovation and adaptability. At the 2025 Morgan Stanley Technology, Media & Telecom Conference, Sravana Karnati, EVP of Global Technology Platforms, offered an inside look at how Walmart (NYSE:WMT) is using technology to sharpen its competitive edge.

Karnati outlined how the company has created a scalable technology infrastructure by balancing in-house development with strategic outsourcing. This approach allows the company to integrate AI and automation into its core operations while adapting quickly to changing market dynamics. The result is a system that enhances customer experience, improves supply chain efficiency, and supports faster innovation across it’s global footprint.

From AI-powered product search and inventory management to automated fulfillment centers and data-driven decision-making, Walmart’s technology strategy reflects a deliberate effort to combine control with flexibility.

By knowing when to build and when to buy, Walmart is positioning itself not just to keep pace with the competition, but to lead the next phase of retail transformation.

Building a Unified Platform

“We had four different platforms powering e-commerce in Mexico alone,” Karnati said. “It became clear we needed a common platform to scale more efficiently.”

As such, Walmart has consolidated its e-commerce and marketplace operations into a single global platform. By creating a unified system, Walmart can introduce new features and updates more quickly while lowering operational costs. It also allows for innovation pilots in smaller markets before rolling them out more broadly.

“We deployed transportation technology in Chile and Central America before we rolled it out in the U.S. Smaller markets allow us to experiment more easily,” Karnati noted.

This “test and learn” approach gives Walmart the flexibility to refine systems and address market-specific needs before scaling globally.

AI and Automation at the Core

AI drives many of Walmart’s recent improvements in customer experience and operational efficiency. Forecasting powered by AI predicts customer demand more accurately, ensuring products are available where and when they’re needed.

“Our search technology has evolved,” Karnati explained. “Customers can now enter full sentences, like ‘toys for a 10-year-old girl,’ and get accurate results. That’s a big leap from keyword-based search.”

Automation is another major focus.

Walmart has partnered with Symbotic, WITRON, and Knapp to automate fulfillment centers. At a California facility, automated systems handle sorting, picking, and pallet assembly with minimal human input.

“It’s like a sci-fi experience,” Karnati said. “The system knows what to pick and assemble based on predictive demand models.”

This automation increases speed, reduces errors, and lowers labor costs, creating a more responsive and cost-effective supply chain.

Data-Driven Decision Making

Walmart processes about 10 petabytes of data every day, that’s roughly 8 trillion pages of text. This data fuels AI models that improve customer experience and internal operations.

AI also enhances efficiency behind the scenes. “We launched a code generation tool last year that saved about 4 million hours,” Karnati said. “That’s roughly 10% increased productivity for our developers.”

Merchants benefit from AI-driven insights as well. Walmart’s internal AI system, Wally, compiles product and market data, providing merchants with real-time insights.

“Wally gives our merchants the right compilation of data so they can focus on making decisions instead of gathering information,” Karnati explained.

Knowing When to Build vs. Buy

Karnati stressed that Walmart’s success comes from knowing when to build technology internally and when to partner with external providers.

“When generative AI came out, we already had experience with transformer models,” Karnati said. “That allowed us to quickly integrate gen AI into our search and catalog systems without relying on a third party.”

Walmart builds its core AI and global platform infrastructure internally to maintain control over customer experience and market responsiveness.

But for specialized technology, Walmart partners with external providers. “We don’t build everything from scratch,” Karnati said. “We partner with vendors like Symbotic for automated picking and delivery systems, but we maintain control over the data and AI models that power them.”

This balance between proprietary development and strategic outsourcing gives Walmart flexibility and cost efficiency without sacrificing control over key customer interactions.

Culture of Agility and Innovation

Despite its size, Walmart remains adaptable. Karnati credited Walmart’s “four-in-the-box” model, where business, product, UX, and technology teams collaborate for driving quick decision-making and innovation.

“It’s amazing how fast we move for a company of our size,” Karnati said. “The collaborative culture allows us to identify problems and solve them quickly.”

Walmart also draws on lessons from international markets. In China, for example, Sam’s Club introduced a “mother club” model where nearby stores deliver products within 30 minutes.

“We’re learning from our international markets,” Karnati noted. “The ‘mother club’ model in China has been incredibly effective. That’s something we’re exploring in other regions.”

Takeaways for CIOs

• Build Core Platforms for Speed and Control: Karnati emphasized that building key infrastructure internally allows Walmart to adapt quickly to market changes and integrate emerging technology like generative AI without relying on third parties.
• Leverage Strategic Partnerships for Specialized Tech: While Walmart builds core platforms internally, it partners with companies for specialized automation in fulfillment centers. This approach combines internal control with the efficiency of external expertise.
• Use AI to Improve Customer Experience and Operations: Walmart’s AI-driven forecasting helps improve inventory accuracy and reduce stockouts. Enhanced search functionality and product catalog matching improve the customer experience. AI also boosts developer productivity and provides merchants with valuable insights.
• Experiment in Smaller Markets First: Walmart tests new systems in smaller markets before scaling to larger markets like the U.S. This “test and learn” strategy allows Walmart to refine systems and address local challenges before a broader rollout.
• Encourage Cross-Functional Collaboration: Walmart’s “four-in-the-box” model, combining business, product, UX, and technology teams, drives faster problem-solving and decision-making. Karnati highlighted how this approach helps Walmart remain nimble despite its size.
• Enhance Automation and Efficiency: Partnerships with automation companies have allowed Walmart to introduce sophisticated systems that increase supply chain speed and accuracy. Automation has reduced labor costs and improved overall operational efficiency.
• Learn from Global Markets: Walmart adapts successful strategies from international markets, such as the “mother club” model in China. Karnati noted that Walmart is exploring how similar models could be implemented in other markets to improve delivery speed and customer service.

The Wrap

Walmart’s approach to technology offers a case study for enterprises navigating complex market demands.

By building core infrastructure and AI models in-house, Walmart retains control over customer experience and operational efficiency. At the same time, strategic partnerships with automation specialists allow Walmart to integrate cutting-edge technology without overextending internal resources.

This hybrid strategy, combining in-house innovation with external expertise, positions Walmart to stay competitive, agile, and customer-focused as retail continues to evolve.