Walmart's in-app AI assistant, Sparky, is making waves after the company's CEO revealed its impact.

What's happening?

During a fourth-quarter earnings call, Walmart's new CEO, John Furner, said that customers who use Sparky spend approximately 35% more than those who do not use the artificial intelligence agent, according to Modern Retail.

Walmart's CEO is bragging that Sparky, the company's in-app AI agent, is leading people to spend 35% more.

He told investors that Sparky gives them a better ability to understand their customers.

This comes as Walmart patents tech that allows for more dynamic pricing.

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David Guggina, the president and CEO of Walmart U.S., mentioned during the call that the tool, which is now used by about half of Walmart app users, "is essentially helping us evolve from traditional search to intent-driven commerce."

Furner highlighted Sparky's ability to assist consumers in locating the products they need and provide insights into their lifestyles. He also noted that it offers additional benefits by better understanding individuals' preferences based on their behaviors.

Why is this concerning?

While Walmart execs are celebrating this efficacy, Sparky is not without its critics. In response to the 35% increased spending claim, one commenter on X noted: "It's called price gouging and investors LOVE it because it increases profits. Taking from all of us to further enrich the rich. It's a wealth tax on YOU levied by a private government called Walmart."

Companies have long used web and app tools to maximize consumer spending. This isn't new. But clearly, AI is rapidly influencing spending habits, which should cause some level of concern.

This is especially true as the cost of groceries and other household essentials continues to increase and inflation has strained families across America.

What can be done about it?

There is no doubt that some AI tools make shopping easier. And while there are benefits to more seamless shopping experiences, they can also lead to increased spending. 

If you're concerned about AI tools' abilities to manipulate you into spending more, avoid opting in. Beyond ensuring you don't spend more than you'd like to, you also provide less information for corporations to use to understand — and influence — your spending habits.

It is clear, though, that as long as tools such as Sparky drive increases in profits, companies will push them onto consumers.

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