Walmart is strategically investing in automation and artificial intelligence (AI) to drive its transformation into a technology-focused retailer. According to CFO John David Rainey, over 50% of the company’s fulfillment center volume is now automated—double the percentage from the previous year. This shift has led to a significant reduction in delivery costs, with a reported 40% decrease in U.S. net delivery costs per order for three consecutive quarters. Additionally, customer satisfaction scores for delivery services have reached record highs.While there are concerns among employees about job displacement due to automation, Rainey emphasized that these technological advancements often create new roles and career opportunities. Walmart is evolving physically demanding jobs into positions that involve operating and maintaining advanced systems. The company is designing new roles, such as automation equipment operators, and providing training to equip associates with skills relevant to these in-demand positions.As part of its modernization efforts, Walmart is transforming its 42 regional distribution centers into high-tech facilities to enhance capacity and speed in merchandise delivery. The retail giant recently reported a 5.5% year-over-year increase in revenue for the three months ending October 31, reaching $169.59 billion, surpassing Wall Street expectations. U.S. same-store sales rose by 5.3%, while global e-commerce sales increased by 27%, with a notable 22% growth in the U.S.Walmart's e-commerce now represents 18% of its overall business, an area where the company continues to invest for long-term profitability. CEO Doug McMillon noted that Walmart's financial structure is evolving, with new revenue streams from membership services, advertising, fulfillment services, and data monetization contributing to a more profitable income statement.Walmart has also developed proprietary generative AI platforms like Wallaby, which utilize decades of company data to enhance customer-facing experiences. Despite maintaining low prices that attract customers across income levels, households earning over $100,000 accounted for 75% of Walmart's revenue growth in the third quarter. The company is committed to sustaining its pricing strategy amidst potential tariff increases projected for 2025.