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Walmart caps usage of an AI tool for employees after high demand

Jaewon Kang, Bloomberg News on

Published in Business News

Walmart Inc. is limiting staff’s usage of an artificial-intelligence tool following high demand, illustrating how corporations are adjusting their calculations for incorporating the technology.

The retailer is now offering a set amount of “tokens” per employee to use Code Puppy, an AI agent that helps with tasks ranging from spreadsheets to presentations, said people familiar with the matter who declined to be named discussing private information. Before, staff had an unlimited amount of tokens — the unit of data for AI computing.

Code Puppy, which was developed in-house at Walmart, was rolled out to employees as part of the retailer’s push to incorporate AI across its operations to work more efficiently. Staff members also have access to other platforms, like Claude and ChatGPT, the people said.

A Walmart spokesman said it wants employees to apply AI in ways that create value and that it’s supporting them with the skills and guidance to use the right AI for the right task. Walmart’s approach is to help them experiment, solve problems and create better experiences, he added.

 

As companies incorporate AI into workflows, they’re finding this comes with costs, especially if employees use it heavily or for tasks involving large amounts of data. Uber Technologies Inc. reportedly spent its annual AI budget in just months, while Microsoft Inc. was said to pull back some offerings.

Nonetheless, corporations from retail to finance are pushing staff to incorporate AI in their day-to-day work. Some are tracking how much workers are using it, while others are considering application levels for compensation.

Walmart has been further ahead than most of its retail peers in implementing AI across its business from supply-chain management to shopping experience. The Bentonville, Arkansas-based company has been gaining market share with its focus on low prices, fast delivery and wide assortment of products.


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