AI shopping agents put retailers’ advertising models under pressure

AI · First reported 4 Nov, 13:04 · Updated 13:37

Image: Wikimedia Commons · Robert Wade · CC BY-SA 2.0

Amazon and Walmart are taking different approaches to letting AI agents shop on their platforms, as retailers weigh potential disruption to advertising revenue and customer data. The article describes the risk as prospective: Amazon’s CEO said third-party agents had not yet meaningfully affected its ads, while Walmart is building infrastructure for agent-driven commerce.

Amazon and Walmart together account for a projected 88% of the estimated $74.4 billion US retail media market. AI agents that research and buy products could affect the retailer websites and apps where brands currently pay to promote products.
Amazon blocked Meta’s Muse from its website in September, saying it appeared to access the store without authorization and capture and store customer credentials. Amazon says third-party agents should operate openly and respect retailers’ participation decisions.
Walmart rolled out infrastructure on October 21 for third-party agent shopping. It plans to link an agent profile to a shopper’s account and let consumers approve purchases or set spending limits.
Amazon’s advertising revenue grew 11% year over year in the third quarter, its slowest growth in nearly four years, though CEO Andy Jassy said third-party agents had not yet meaningfully affected its ads. Advertising accounts for about 10% of Amazon’s total net sales.
The article reports forecasts that agents could account for 10% to 20% of US e-commerce spending by 2030, and that retail media spending will rise 22.6% in 2026 compared with 2025. It also describes industry advice to prepare for changes without shifting budgets overnight.

Summary written by Lux AI from 3 articles

Key facts

Combined US retail media share: Amazon and Walmart have a projected combined 88% share of an estimated $74.4 billion market.
Amazon ad revenue growth: 11% year over year in the third quarter, the slowest pace in nearly four years.
Walmart infrastructure launch: October 21; the system links an agent profile to a shopper’s account and supports purchase approvals or spending limits.
Agent e-commerce forecast: Morgan Stanley researchers said agents could account for 10% to 20% of US e-commerce spending by 2030.