Walmart's AI Workforce Prep Plan

As the U.S. job market is being reshaped by artificial intelligence and shifting demographics, Walmart, the country's largest private employer, is working to pinpoint the skills its workforce and the broader labor market may require in the future.

Walmart hosted more than 300 experts and representatives from other companies participating in the Skills-First Workforce Initiative. This initiative aims to create and fill reliable jobs based on demonstrated skills, irrespective of college attendance.

Walmart has already started its own employee training and certification programs to address the need for truck drivers and maintenance technicians. These are roles that U.S. companies report difficulty in filling quickly enough as experienced workers retire. Walmart plans to introduce a similar AI skills program next year through a collaboration with OpenAI, the creator of ChatGPT.

The Associated Press interviewed Walmart CEO Doug McMillon at the company's headquarters in Bentonville, Arkansas, to discuss AI and the American workforce. The interview was edited for the sake of clarity and brevity.

Turnover and Wages

McMillon noted that turnover numbers are decreasing, and in comparison to the pandemic, things now feel much more stable. He believes the rate of change in the employment market is now easier to handle.

McMillon stated that they continue to invest in wages, which is beneficial, and that this will continue. Regarding AI and the future of employment, he feels that their employees are generally enthusiastic. They are seeing new tools that improve their jobs by reducing the number of steps required. Also, sales are increasing significantly, leading to optimism about their future.

AI's Impact on Jobs

McMillon believes that every job will be changed to some degree and improved through the adoption and leveraging of new tools. The company employs 2.1 million people globally, with fewer than 75,000 in home office positions. The remaining employees work in stores, clubs, or distribution centers. Changes in these roles will likely be more gradual, as the company intends to continue serving customers with people. However, changes in home office jobs may occur more rapidly.

McMillon emphasized a transparent, honest, and straightforward approach to communicating with employees about what the company is learning, doing, and why.

He noted one of the biggest changes in the last decade has been in associates picking orders for delivery and pickup. They have over 200,000 people in that role, while maintaining roughly the same number of total employees in Walmart U.S. This was achieved by creating new, higher-paying jobs while reducing older roles. He hopes that the net result of these changes will be even more employment opportunities.

McMillon highlighted store managers as an example of a great and challenging job that is well-compensated. Store managers interact with the community, manage large teams, and are responsible for delivering significant sales numbers. The skills required are both human and technical, and these human skills will become even more valuable in the future.

McMillon noted that a lack of awareness exists regarding certain roles, such as technicians and drivers. He aims to inform people about these opportunities. Walmart has been successful in attracting talented individuals, and their turnover rates are decreasing.

McMillon said that working together, sharing information, and learning together is the best way to navigate the future of AI. This will accelerate their ability to prepare associates for success. The company's goal is to embrace change and help lead the way to better outcomes for everyone involved.