AI shopping agents could challenge one of the most profitable businesses in online retail: advertising. Amazon and Walmart earn billions from brands seeking prominent placement across their digital stores. However, automated shopping assistants could change how consumers discover products, compare prices and make purchases.
The emerging technology creates a difficult choice for major retailers. They can welcome independent AI assistants and potentially reach more customers, or restrict access to protect their existing shopping platforms. Amazon and Walmart are already pursuing different strategies as the industry examines the financial consequences.
Why AI Shopping Agents Threaten Retail Advertising
Retail advertising depends on customers visiting websites or applications where sponsored products appear alongside search results and recommendations. Brands pay retailers to improve visibility when shoppers are considering purchases. That model becomes less predictable when software conducts much of the shopping process.
An AI assistant might compare dozens of products using price, specifications, availability and delivery preferences. It could then recommend a small selection without displaying the sponsored listings normally shown on retail websites. This would potentially reduce advertising impressions and weaken the value of traditional product placements.
Amazon and Walmart account for a combined 88% of the estimated $74.4 billion U.S. retail media advertising market, according to Emarketer projections reported by Reuters. Morgan Stanley researchers also estimate that AI agents could handle 10% to 20% of American e-commerce spending by 2030. These forecasts illustrate the potential disruption, although neither establishes that advertising revenue will decline.
Amazon Defends Its Shopping Platform and Advertising Business
Amazon has taken a restrictive approach toward certain independent shopping agents. The company blocked Meta’s Muse assistant in September, alleging unauthorized access to its online store and customer account information. Amazon maintains that outside agents should identify themselves and respect retailers’ decisions about participation.
The retailer has also challenged Perplexity’s Comet shopping agent through litigation. An appeals court overturned an earlier restriction in August, while the underlying dispute remains unresolved. These conflicts highlight questions about platform access, customer authorization and control over automated transactions.
Amazon’s advertising business remains substantial. Its third-quarter 2026 financial results show advertising services revenue of approximately $19.64 billion, up 11% from the previous year. That marked its slowest annual growth rate in nearly four years, according to LSEG data cited by Reuters.
Amazon CEO Andy Jassy said third-party shopping agents had not meaningfully impacted advertising revenue. The slower growth therefore cannot be attributed directly to automated shopping. Amazon is also developing advertising opportunities within its own AI-powered shopping experiences.
Walmart Opens Its Retail Systems to Independent AI Agents
Walmart is approaching the technology differently. On October 21, the company announced new infrastructure intended to support purchases through outside AI assistants, including tools from Meta, Google and OpenAI. Its strategy emphasizes participating in emerging shopping channels rather than requiring every transaction to begin on Walmart’s website.
The company’s Agent Profiles and Walmart Agent Gateway introduce mechanisms for controlled automated purchasing. Customers can authorize individual assistants, review transactions, and set spending restrictions. The company plans to introduce Agent Profiles in November, while the gateway begins with a developer beta.
Walmart says agents will not receive customers’ payment-card information. Shoppers can also revoke access when they no longer need an assistant. These safeguards address some concerns about allowing external software to interact with retail accounts.
However, supporting automated shopping creates its own commercial challenges. Walmart must preserve customer relationships and advertising opportunities even when consumers interact primarily with another company’s assistant. Its Walmart Connect advertising business remains an important contributor to the retailer’s broader profitability.
Retail Advertising May Shift From Visual Placement to Product Data
The potential disruption extends beyond Amazon and Walmart. Brands have traditionally invested in sponsored listings, attractive product photography and promotional campaigns to influence shoppers. AI-driven purchasing could place greater emphasis on structured product information and measurable suitability.
For example, an assistant searching for a laptop may prioritize processor performance, memory, battery specifications and price. Another shopper looking for household supplies might compare package sizes, unit costs and delivery schedules. Accurate product information could become more influential when software helps narrow purchasing options.
That does not mean advertising will disappear. Retailers could develop sponsored recommendations or new advertising systems designed for AI-assisted discovery. Walmart has already tested advertisements within Sparky, its shopping chatbot, while Amazon has integrated advertising into its own AI shopping assistant.
The challenge will be maintaining consumer trust. Shoppers need to understand whether recommendations reflect product suitability, commercial payments or a combination of factors. Clear advertising disclosure could become increasingly important as assistants take a larger role in purchase decisions.
Agentic Commerce Creates New Opportunities and Risks
The advertising debate reflects a broader transition toward agentic commerce. These systems can move beyond answering questions to coordinating product searches, checking availability and preparing transactions. However, their capabilities depend on retailer integrations and customer permissions.
TechAmerica.ai previously covered this transition in its reporting on AI shopping agents and retail automation. Reliable product information, secure checkout connections and clear authorization remain essential requirements for broader adoption.
Technical standards are also evolving. Google’s Universal Commerce Protocol is designed to help shopping applications communicate with participating merchants. TechAmerica.ai covered the introduction of the commerce standard earlier this year, including its potential role in product discovery and checkout.
Yet important limitations remain. Shopping agents can encounter inaccurate inventory data, incompatible products or changing prices. They may also misunderstand customer preferences or select products based on incomplete information. Retailers must address these risks before customers can confidently delegate more purchasing decisions.
Retail Media Spending Is Still Expected to Grow
Despite the concerns surrounding AI shopping agents, retail advertising is not facing an immediate collapse. Emarketer forecasts a 22.6% increase in U.S. retail media spending during 2026 compared with the previous year. That projection suggests advertisers still see substantial value in existing retail platforms.
Consumer adoption of automated purchasing also remains limited. TechAmerica.ai recently reported that DoorDash received only several hundred orders through third-party AI agents, despite processing hundreds of millions of orders overall. The comparison demonstrates how far emerging shopping technology remains from widespread transactional use.
Brands therefore have little reason to abandon established advertising channels immediately. Instead, they may need to improve product data, monitor AI-driven discovery and assess whether automated recommendations influence purchasing decisions.
What Comes Next for Amazon, Walmart and Advertisers?
The next stage of competition may revolve around who controls product discovery rather than who operates the checkout page. If consumers increasingly shop through independent assistants, retailers could lose opportunities to display ads and collect shopping-behavior data.
Amazon’s restrictive approach may help preserve control over its digital storefront, while Walmart’s integrations could position it to participate in additional shopping channels. Neither strategy guarantees stronger advertising performance. Both companies must balance consumer convenience, commercial relationships and the security of automated transactions.
For advertisers, the central question is whether AI assistants will complement existing retail media or gradually replace important parts of it. The answer will depend on actual consumer adoption, recommendation transparency and the economics of advertising within AI systems.
For now, the financial threat remains prospective rather than established. The larger development is a possible shift in influence from retail search results toward automated purchasing decisions. Their long-term implications will become clearer as consumers begin relying more heavily on AI agents to shop.
