AI Shopping Agents Threaten Amazon and Walmart's Ad Business
AI shopping agents could erode Amazon and Walmart's ad revenue
In this article
Introduction to AI shopping agents
According to Reuters, AI shopping agents could threaten Amazon and Walmart's ad business 1.
These agents can research products on consumers' behalf. They can also purchase products, potentially eroding the business of brands paying retailers to promote products on their websites and apps 3.
The rise of AI-led shopping is posing a conundrum for retailers like Walmart and Amazon 3.
AI shopping agents threaten Amazon and Walmart's ad business
Impact on amazon and walmart
Amazon blocked Meta's shopping assistant, Muse, from its site. It cited unauthorized access and customer credential capture 2. This move highlights the challenges Amazon faces with AI shopping agents. According to Reuters, AI agents could threaten Amazon's ad business 1. Amazon's ad revenue is a significant portion of its total net sales.
Walmart has taken a different approach, introducing infrastructure for third-party AI agents to shop on its site 2. The company is partnering with Meta's Muse, allowing shoppers to use AI agents to browse and purchase products. This move could impact Walmart's ad business, which is a significant part of its retail media network 2. Walmart's retail media unit, Walmart Connect, drives operating income growth.
Generally, ad revenue at the company rose 11% year over year in the third quarter, the slowest pace in nearly four years 2. CEO Andy Jassy stated that outside agents have not had a meaningful effect on advertising 2. However, AI shopping agents could potentially disrupt its ad business, which supplies roughly 10% of its total net sales 2. According to BigGo Finance, US retail media spending will reach $74.4 billion in 2026 2.
Advertising revenue at risk
Notably, Amazon and Walmart control 88% of the US retail media market, which is projected to reach $74.4 billion in 2026 2. This market is at risk due to AI shopping agents. Morgan Stanley researchers estimate AI agents could account for 10% to 20% of US e-commerce spending by 2030 2.
Advertising revenue consistently supplies roughly 10% of its total net sales 2. Jassy's company saw 11% year-over-year growth in the third quarter 2. This growth is the slowest pace in nearly four years, according to LSEG data 2. Its business is affected by these agents.
Meanwhile, Amazon and Walmart have different approaches to AI shopping agents 1. Amazon banned Meta Platforms' shopping assistant, Muse, from its site in September 2. Walmart introduced infrastructure allowing third-party AI agents to shop on its site on October 21 2. This infrastructure creates a profile for each agent tied to the shopper's Walmart account 2.
What it means for readers
For small-business owners and e-commerce brands running Meta ads, a shift in strategies may be necessary. This is due to emerging technologies 2.
Companies like Procter & Gamble, Nestle, and L'Oreal are reworking their online listings. They want AI agents to read and recommend their products more easily 2.
Following suit, policymakers note that advertising aimed at bots may be different. They may lean less on visual appeal or emotional messaging. Consequently, it may lean more on precise product data that matches a shopper's query 2.
What isn't known yet
It is unclear how they will ultimately adapt to emerging technologies and the potential threat to their ad revenue 3.
The outcome of Amazon's court case against Perplexity's shopping agent Comet is still pending. It could have implications for the industry 2.
The impact on the retail landscape is still unknown. It will likely depend on how retailers and brands respond to changing market conditions 2.
Frequently asked questions
What are AI shopping agents?
AI shopping agents are tools that can research and purchase products on consumers' behalf, potentially eroding the lucrative business of brands paying retailers to promote products on their websites and apps 3.
How are Amazon and Walmart responding to AI shopping agents?
Amazon has blocked Meta's newly released shopping assistant, Muse, from its site, while Walmart has introduced infrastructure allowing third-party AI agents to shop on its site and is partnering directly with Meta's Muse 2.
What does this mean for small-business owners and e-commerce brands?
The rise of AI shopping agents could mean a shift in advertising strategies, with companies reworking their online listings to make them more easily readable by AI agents 2.
About this article
Our system reads Meta, Facebook and Instagram advertising coverage from established publishers every hour. A story is only written when at least three independent outlets report it. Every figure must appear in a cited source, and each draft passes automated checks for accuracy, originality and readability. Drafts that score highly on every check publish automatically; the rest wait for a human editor. Drafted with AI assistance from the sources listed. Not financial or professional advice.
- Published.
- Reuters: AI shopping agents could threaten Amazon and Walmart's ad business · Nov 4, 2026 ET
- BigGo Finance: AI Shopping Agents Threaten Amazon and Walmart's $74.4 Billion Retail Ad Business · Nov 4, 2026 ET
- WTVB: Analysis-AI shopping agents could threaten Amazon and Walmart’s ad business · Nov 4, 2026 ET
