Walmart brings Sparky to ChatGPT as OpenAI rethinks Instant Checkout - Retail Dive
Six months. That is how long OpenAI's Instant Checkout lived inside ChatGPT before Walmart walked away from it.
The product, which launched on September 29, 2025 (https://openai.com/index/buy-it-in-chatgpt/) with Etsy and a promise to bring millions of Shopify merchants into the chat, was effectively dead by March 2026 (https://www.thekeyword.co/news/openai-chatgpt-instant-checkout-scrapped). Walmart — one of the first and most prominent retail partners — will replace it with Sparky, its own conversational shopping assistant built on open-source AI models and decades of Walmart transaction data. By April 2026, the Instant Checkout experience will no longer exist inside ChatGPT.
The headline numbers from that six-month experiment are brutal. Conversion rates — the percentage of users who actually completed a purchase after ChatGPT showed them a product — were three times lower inside the chatbot than on Walmart's own website (https://www.wired.com/story/ai-lab-walmart-openai-shaking-up-agentic-shopping-deal/), according to Daniel Danker, Walmart's executive vice president of AI acceleration, product and design, speaking at a Morgan Stanley investor conference in early March. "It was a very temporary moment in time," he told CNBC (https://www.cnbc.com/2026/03/20/open-ai-agentic-shopping-etsy-shopify-walmart-amazon.html) at the same event.
On the Shopify side, the gap between announcement and reality was even wider. OpenAI said millions of merchants would be available. Only around 12 actually went live (https://www.thekeyword.co/news/openai-chatgpt-instant-checkout-scrapped), out of a platform with millions of sellers. The company confirmed it had not yet built a system to collect and remit U.S. state sales taxes (https://www.thekeyword.co/news/openai-drops-plan-for-direct-checkout-inside-chatgpt) as of February — a basic requirement for e-commerce that OpenAI simply had not addressed.
"The enablement of transactions was going to be" more difficult than expected, Bob Hetu, an analyst at Gartner, told CNBC (https://www.cnbc.com/2026/03/20/open-ai-agentic-shopping-etsy-shopify-walmart-amazon.html). "On the one hand it's a little surprising, but on the other hand it's not easy for retailers."
The data problem runs deeper than onboarding logistics. Crawling and scraping is inadequate to get the full breadth of product data that you need to do a good job of commerce (https://www.cnbc.com/2026/03/20/open-ai-agentic-shopping-etsy-shopify-walmart-amazon.html), said Emily Pfeiffer, a principal analyst at Forrester. Retail catalogs are enormous, constantly changing, and structured in ways that no web scraper handles cleanly. "You need direct relationships with retailers," she said.
OpenAI is now pivoting to a different model. Instead of controlling checkout itself, the company is working with retailers to create dedicated apps within ChatGPT (https://www.cnbc.com/2026/03/20/open-ai-agentic-shopping-etsy-shopify-walmart-amazon.html) — what it calls the Agentic Commerce Protocol. Seven major retailers — Target, Sephora, Nordstrom, Lowe's, Best Buy, The Home Depot, and Wayfair — are now live via ACP (https://www.thekeyword.co/news/openai-chatgpt-instant-checkout-scrapped). The shift puts merchants in control of their own product listings, pricing, and fulfillment, with OpenAI providing the conversational layer on top.
"We have found that the initial version of Instant Checkout did not offer the level of flexibility that we aspire to provide," an OpenAI spokesperson said (https://www.thekeyword.co/news/openai-chatgpt-instant-checkout-scrapped).
Walmart, meanwhile, is betting that its own approach will fare better. Sparky — developed internally but built on open-source generative AI models combined with retail-specific ones trained on Walmart data — has been adopted by roughly half of Walmart app users (https://www.wired.com/story/ai-lab-walmart-openai-shaking-up-agentic-shopping-deal/), according to the company. Sparky users spend about 35 percent more per order than other Walmart shoppers, and the chatbot is bringing in about twice the rate of new customers as search engines (https://www.wired.com/story/ai-lab-walmart-openai-shaking-up-agentic-shopping-deal/) — the former according to Walmart US CEO David Guggina, the latter according to Danker at the Morgan Stanley conference.
But Danker is not pretending the product is finished. Sparky is slow and generates weak responses often enough that some consumers have started dismissing it as unreliable. "They fear that when checkout happens automatically after every single item that they are going to receive five boxes when they actually just want it all in one," Danker told Wired (https://www.wired.com/story/ai-lab-walmart-openai-shaking-up-agentic-shopping-deal/) — a genuine consumer trust problem that no conversational interface solves on its own.
The broader survey data is cautiously optimistic: 22 percent of AI users have completed a purchase directly inside an AI tool, and 69 percent expect AI to play a bigger role in how they shop in the future (https://www.semrush.com/blog/ai-tools-the-modern-buyer-journey-study/), according to a Semrush survey of 1,030 respondents conducted in December 2025. (The survey was commissioned by Semrush — treat the numbers as directional, not definitive.)
The failure of Instant Checkout is a useful correction to the narrative that AI commerce is a solved problem. The hard parts of retail — reliable product data, tax compliance, merchant relationships, consumer trust in automated purchasing — are not AI problems. They are infrastructure problems that AI cannot short-circuit, no matter how capable the language model underneath. OpenAI built a compelling conversational layer and discovered that commerce requires everything underneath it to work correctly. Walmart built its own layer specifically because it already owned that infrastructure.
What comes next is a more modest proposition: AI helps shoppers research and discover products inside a chat interface, but the actual transaction still flows through each retailer's own systems. That is a genuine step forward — and a more honest one than what Instant Checkout promised.