Walmart Is Embedding Its Own Chatbot Inside ChatGPT — Because OpenAI's Checkout Flopped

Smartphone showing AI shopping chatbot with blue shopping bags

OpenAI's Checkout Feature Failed Walmart

Here is a revealing data point about the state of AI commerce: when Walmart tried selling products through OpenAI's Instant Checkout feature in ChatGPT, conversion rates were 3x lower than when customers were sent to Walmart's own website.

The solution? Instead of relying on OpenAI's native shopping experience, Walmart is now embedding its own chatbot — Sparky — directly inside ChatGPT and Google Gemini.

Why Instant Checkout Failed

OpenAI launched Instant Checkout as a way for users to buy products without leaving ChatGPT. The idea was compelling: ask the AI for a product recommendation, then buy it with one click. But the reality fell short.

According to Wired, Walmart found that customers who used Instant Checkout converted at just one-third the rate of those who clicked through to Walmart.com. The likely reason: people do not trust buying things inside a chatbot. They want to see the full product page, read reviews, compare options, and check out through a familiar interface.

The Sparky Solution

Rather than abandoning AI-powered commerce entirely, Walmart is taking a different approach: bring Sparky — its own AI shopping assistant — into the platforms where customers are already chatting.

Sparky will be embedded inside both ChatGPT and Google Gemini, providing product recommendations, answering questions, and guiding customers through a shopping experience that Walmart controls from end to end.

This is a significant shift. Instead of letting OpenAI handle the shopping experience (and losing 2/3 of conversions), Walmart is essentially saying: we will use your AI platform as a distribution channel, but we will handle the commerce ourselves.

What This Means for AI Commerce

Walmart's move reveals a fundamental tension in AI-powered commerce:

  • AI platforms want to own the transaction — OpenAI's Instant Checkout was an attempt to keep users inside ChatGPT
  • Retailers want to own the customer relationship — Walmart's Sparky ensures they control the experience
  • Customers want familiarity — the 3x conversion gap shows people are not ready to buy inside chatbots

The Bottom Line

Walmart embedding Sparky inside ChatGPT is a power move that redefines the relationship between AI platforms and retailers. OpenAI built Instant Checkout to become the new shopping cart of the internet. Walmart just said: no thanks, we will bring our own.

The bigger lesson is that AI commerce is not ready to replace traditional e-commerce. People want AI to help them decide what to buy — but they want to actually buy it somewhere they trust. For now, that is still a website with a real checkout page, not a chatbot.