Walmart Ditches ChatGPT Checkout: Lower Conversions Drive Shift to Sparky AI Assistant
Walmart is significantly altering its strategy for AI-powered shopping within ChatGPT, pulling back from OpenAI’s “Instant Checkout” feature after internal data revealed substantially lower conversion rates compared to purchases made directly on its website. The move, first reported by Wired, signals an early challenge for the “agentic commerce” model touted by both companies when they initially partnered in October 2025.
According to Daniel Danker, Walmart’s executive vice president of AI acceleration, product and design, conversion rates within ChatGPT were roughly one-third of those achieved through Walmart’s native online channels. He described the experience as “unsatisfying,” indicating that customers were less likely to complete purchases when initiated and processed within the OpenAI chatbot interface.
The initial rollout of Instant Checkout, which allowed ChatGPT users to purchase approximately 200,000 Walmart items without leaving the chat, faced several hurdles. CNBC reported that the feature offered a limited product selection even months after launch and occasionally displayed inaccurate item information. The interface’s design also presented friction, particularly for larger purchases. Walmart deliberately excluded high-consideration items like televisions due to the chat format’s inability to effectively support bundling and accessory recommendations.
The shift reflects a broader concern among retailers about relinquishing control of the transaction process to AI platforms. OpenAI initially envisioned a system where it would earn a commission on purchases made through ChatGPT, leveraging what it termed the “Agentic Commerce Protocol” built with Stripe. Even though, Walmart’s experience suggests that handing over payment details and shipping preferences to a third party created a barrier to completion for many customers.
Walmart is now pivoting to a model that prioritizes maintaining control over its own systems. The company will integrate its in-house AI assistant, Sparky, directly into ChatGPT. Danker stated that a similar integration is planned for Google’s Gemini chatbot. Under this novel structure, users will interact with Sparky within ChatGPT but will log in using their existing Walmart accounts, ensuring that the company retains control of the underlying shopping experience and checkout process.
This approach allows Walmart to synchronize shopping carts across its website, mobile app, and ChatGPT, providing a more seamless and consistent experience. The company will continue to process all transactions on its own infrastructure, preserving customer loyalty data and transaction economics. Early internal data indicates that Sparky within ChatGPT is converting at approximately 70% of the rate seen on Walmart.com, a significant improvement over Instant Checkout, though these figures are still considered preliminary.
The change complicates OpenAI’s initial enterprise strategy, which positioned the platform as owning the transaction layer. The revised model shifts that control back to merchants, with OpenAI focusing on product discovery and search, areas where user engagement has been stronger. Shopify has also announced it will no longer support native checkout within ChatGPT, opting instead to redirect transactions to merchant storefronts. Etsy confirmed to CNBC that it is developing a dedicated ChatGPT app to maintain control over its shopping experience.
Amazon is pursuing a different path, 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, as well as features like “Shop Direct,” which allows customers to browse and purchase items beyond Amazon’s core marketplace. This strategy reinforces Amazon’s control over the entire shopping journey, from discovery to transaction.