| | In today’s edition, we look at how the giant retailer has been using the technology to boost product͏ ͏ ͏ ͏ ͏ ͏ |
 | Reed Albergotti |
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Hi, and welcome back to Semafor Tech. Walmart held a media event in Secaucus, N.J. earlier this week to showcase what it’s doing with AI to automate its stores. Semafor reporter J.D. Capelouto attended and asked a great question: What has that done to employee headcount? According to Walmart, it hasn’t really changed. Not in Secaucus, nor at any other store. If you want to know how AI is going to change the employment landscape, Walmart is an interesting company to study. With 1.6 million workers in America, it is the largest U.S. employer outside of the federal government. But despite its public image as a brick-and-mortar operation that sells everything from guns to diapers on the cheap, it has actually been a tech company for a while now, and it looks a lot more like Amazon than people realize. Walmart has almost every kind of employee, from coders to forklift operators. It has the resources to splurge on software innovation and the ability to scale those advances. It’s too early to jump to conclusions, but it’s an important company to keep an eye on. Read below for more. ➚ MOVE FAST: Satellite internet. After years of fanfare, Amazon is finally getting its service off the ground. It’s scheduled to launch its first two rockets today, carrying satellites that will rival SpaceX’s Starlink, which has revolutionized everything from van life to warfare. ➘ BREAK THINGS: Satellite TV. AT&T is looking to dump its stake in DirecTV, Bloomberg reports. The service has been shrinking in the age of internet streaming. It was once the only way U.S. customers could watch every NFL game. That’s been taken over by YouTube.  HurricaneGeek2002/Wikipedia Commons |
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One big reason people buy new iPhones is to get the upgraded cameras. You have to wonder, though, whether camera quality will matter for much longer. Google released new features on the Pixel 8 phones that allow for all sorts of AI-powered editing on photos. One of the features “enhances” a photo. You can zoom way in on one part of the image, and the AI will un-pixelate it, kind of like when they unblur security camera footage in movies. The smartphone camera disrupted SLRs and point-and-shoots. Now it looks like the smartphone camera is going to be disrupted by AI. And it only took about 15 years.  Google |
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Why Walmart thinks AI won’t cut jobs |
THE NEWS Thanks to AI tools, a backroom employee at a Walmart supercenter now spends two-thirds less time figuring out whether a product inside a box is needed on store shelves. What used to require a manual scan of every single package is now done by a smartphone app, which uses augmented reality to scan a wall of boxes and immediately tell a worker whether they contain items that are out of stock. Walmart, the largest U.S. private sector employer, has a growing arsenal of AI software that its 1.6 million employees use. It could provide a case study in how AI might affect workers, at least in the short term. Despite the AI-powered boost in efficiency, the company’s Secaucus, N.J. store — one of the top 20 in the company for product volume — still employs about the same number of people as it did before the tech was rolled out, the company said during a tour of the 190,000-square-foot superstore this week. Walmart and its labor policies are closely watched; most recently, it reduced the starting pay for some roles like personal shoppers and people who stock shelves, which are some of the jobs that increasingly utilize AI. In January, Walmart increased its hourly minimum wage from $12 to $14.  WalmartTHE SCENE During the tour, reporters were shown several AI-based tools, including one that automatically determines the most efficient way to load a truck. On the store floor, an algorithm determines the best way to organize a shelf based on customers’ buying patterns. And there’s a conversational app that can help employees answer questions for customers. All of this is aimed at reducing the time it takes to complete routine tasks. “It has helped our team move at a very exponential pace, to make sure that we’re protecting our sales floor,” store manager Josh Strudl said. “We want to make sure we’re giving the customer the face time, not a box.” His store in Secaucus employs about 740 associates. Ivy Barney, senior vice president of operations, said the AI innovations haven’t led to a single person being let go, but “what they do is actually different.” Some employees, she added, have been moved to other jobs within the store — such as fulfilling online orders or overseeing a self-checkout section. Company-wide, Walmart plans to employ about the same number of people or more as additional AI tech is rolled out over the next several years, a Walmart spokesperson said. For J.D.'s view and the rest of the story, read here. → |
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October is abuzz with live journalism from Semafor. See below our schedule of gatherings for your calendar. We look forward to welcoming you. Debating the broadband connectivity challenge RSVP
Date: October 10 | Washington D.C
Semafor’s editors, alongside AT&T CEO John Stankey, and FCC Commissioner Brendan Carr, will gather to discuss how the recent infrastructure law, the new net neutrality proposal, and regulatory red tape create fresh barriers and new solutions for greater broadband connectivity. Program Partner: AT&T Cybersecurity in the age of AI RSVP
Date: October 17 | Washington D.C.
Join us in exploring the threats, the solutions and the future of cyber security from the lens of business, policy, privacy and beyond.
Program Partner: Cisco |
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 Approximate amount that Meta paid one celebrity to allow their likeness to be used for an AI avatar. The Information reported the number, but the anonymous source apparently didn’t name the celebrity. Our guess is it’s Snoop Dogg. |
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- ChatGPT creator OpenAI is considering manufacturing its own AI chips, according to Reuters. CEO Sam Altman has previously complained that it’s difficult to obtain the graphics processing units in a global market overwhelmingly dominated by Nvidia. The story indicates that OpenAI’s ambitions are far-reaching — the company is also discussing building its own hardware device.
- Sam Bankman-Fried’s trial has begun in New York. The founder of bankrupt crypto exchange FTX is facing seven charges related to fraud and money laundering. Two of his former colleagues have testified so far, including FTX CTO Gary Wang, who has already accepted a plea deal. “Did you commit crimes at FTX?” the prosecutor asked Wang. “Yes,” he replied. Caroline Ellison, Bankman-Fried’s ex-girlfriend, is expected to be the prosecution’s star witness. She ran the hedge fund accused of stealing customer funds from FTX.
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 - Republicans couldn’t save Kevin McCarthy, but some are hoping to avenge him. Allies of the ousted speaker are floating a range of punishments for the party’s rebels.
- FIFA’s plan to hold the 2030 men’s World Cup across three continents is raising questions from climate advocates after disputed past carbon neutrality claims.
- London is considering a shake-up of its electricity grid. The U.S.’s massive climate law is an unexpected factor.
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