Walmart Ditches ChatGPT Checkout: Lower Conversions Drive Shift to Sparky AI Assistant

Walmart is recalibrating its foray into AI-powered shopping, pulling back from OpenAI’s Instant Checkout feature within ChatGPT. The move, reported by Wired, stems from internal data revealing conversion rates roughly three times lower than those achieved on Walmart’s own website. This early test case highlights the challenges of integrating retail transactions directly within third-party AI platforms and signals a broader industry reassessment of the agentic commerce model.

A Disconnect in Conversion

The initial partnership, launched in October 2025, allowed ChatGPT users to purchase approximately 200,000 Walmart items without leaving the chat interface. Built using OpenAI’s Agentic Commerce Protocol and Stripe for payment processing, the system aimed for a seamless shopping experience. Although, the results proved underwhelming. Daniel Danker, Walmart’s executive vice president of AI acceleration, product and design, described the conversion rates within ChatGPT as “unsatisfying,” reaching only about one-third of those on Walmart’s native channels, as detailed in a Wired report.

Beyond the lower conversion rates, several factors contributed to the underperformance. CNBC reported a limited product selection even months after launch, coupled with instances of inaccurate or outdated item information. The chat-based interface itself presented friction, particularly for higher-consideration purchases like televisions, where the linear query format couldn’t accommodate bundling or accessory recommendations. Customers also expressed hesitation with an unfamiliar payment flow within a third-party interface, a concern echoed by Gartner analyst Bob Hetu, who told CNBC that OpenAI “underestimated how difficult the enablement of transactions was going to be.”

Sparky Takes the Reins

Walmart is now shifting its strategy, replacing Instant Checkout with an integration of its in-house AI assistant, Sparky, directly within ChatGPT. This approach allows users to interact with Sparky within the ChatGPT environment but log in directly to their Walmart accounts. Crucially, Walmart retains control of the underlying systems, synchronizing shopping carts across its website, mobile app, and ChatGPT. Checkout remains exclusively on Walmart’s infrastructure.

This move represents a significant change from OpenAI’s initial vision of owning the transaction layer, as reported by The Information. Instead, OpenAI will focus on product discovery and search, areas where user engagement has been stronger. Early data suggests the Sparky integration is performing better, achieving conversion rates around 70% of Walmart.com’s, though these figures are still preliminary. Danker emphasized that Walmart is focused on bringing its store directly to the customer, rather than routing them through a disconnected checkout process.

Ripple Effects Across the Retail Landscape

Walmart’s experience is already influencing other major retailers. Shopify has announced it will no longer support native checkout within ChatGPT, opting instead to redirect transactions back to merchant storefronts. Etsy has confirmed It’s developing a dedicated ChatGPT app to maintain control over its shopping experience, according to CNBC. This trend underscores a growing desire among retailers to protect their customer relationships and transaction data.

Amazon is taking a different tack, keeping AI commerce tightly integrated within its own ecosystem. The company continues to expand tools like its Rufus shopping assistant and “Buy for Me” agent, alongside features like “Shop Direct,” which allows customers to browse and purchase items beyond Amazon’s core marketplace. Amazon’s strategy prioritizes embedding discovery, recommendation, and transaction flows within its own platform, reinforcing control over the entire shopping journey.

The Cost of Control and the Future of Agentic Commerce

The Walmart-OpenAI situation highlights a fundamental tension in the emerging landscape of AI-driven commerce: the trade-off between reach and control. While integrating with platforms like ChatGPT offers potential access to new customers, it also requires relinquishing a degree of control over the customer experience and, crucially, the transaction itself. For retailers like Walmart, protecting customer data, maintaining brand consistency, and optimizing conversion rates are paramount.

The lower conversion rates experienced with Instant Checkout likely translate to a direct financial impact for both Walmart and OpenAI. While specific revenue figures aren’t publicly available, a three-fold difference in conversion rates represents a substantial loss in potential sales. The cost of developing and maintaining the integration, coupled with the marketing expenses associated with the launch, adds to the financial burden.

The shift towards merchant-controlled architectures, exemplified by Walmart’s Sparky integration and Shopify’s decision, suggests a recalibration of expectations for agentic commerce. OpenAI’s focus on product discovery and search aligns with its core strengths in natural language processing and information retrieval. However, the company will need to demonstrate its ability to deliver value to retailers without directly controlling the transaction layer.

What’s Next for AI-Powered Shopping

The immediate next step for Walmart is the full rollout of the Sparky integration within ChatGPT and its planned expansion to Google’s Gemini. The company will be closely monitoring conversion rates and customer feedback to refine the experience. As PYMNTS previously reported, Walmart’s initial foray into AI-first shopping signaled a broader commitment to leveraging the technology across its operations.

For OpenAI, the challenge lies in adapting its enterprise strategy to accommodate the preferences of major retailers. The company will likely focus on developing tools and APIs that enable merchants to seamlessly integrate their products and services into AI platforms while maintaining control over the transaction process. The success of this approach will depend on OpenAI’s ability to demonstrate a clear return on investment for retailers.

The broader industry will be watching closely to see how these developments unfold. The Walmart-OpenAI case study provides a valuable lesson for retailers considering similar partnerships: carefully weigh the benefits of reach against the costs of control, and prioritize a seamless customer experience that aligns with your brand values. The future of AI-powered shopping will likely be characterized by a more nuanced and collaborative approach, where AI platforms and retailers work together to deliver value to consumers without sacrificing control.