Walmart has implemented Artificial Intelligence (AI) camera technology at about 1,000 of its locations to combat theft.
Previously, Walmart had used AI for different purposes, but it is now employing a surveillance program known as “Missed Scan Detection” to monitor scanning accuracy. The AI-driven cameras are stationed at various checkpoints, including self-checkout registers, and have the ability to track and analyze activities. When an anomaly is detected, such as an item passing by without being scanned, the system alerts employees to take necessary actions. While most incidents are accidental, Walmart aims to dissuade potential thieves from exploiting such opportunities.
Walmart spokesperson LeMia Jenkins expressed the company’s commitment to customer and staff safety through this significant investment. Retailers, including Walmart, have been grappling with revenue loss due to shrinkage, which incorporates theft and related losses. In 2017, the retail sector lost approximately 1.33% of revenue to shrinkage. If Walmart’s shrinkage rate mirrors the industry average, the company could have incurred a $4 billion revenue loss in the previous year. The implementation of AI cameras seems to be yielding positive results, with reported reductions in shrinkage rates at stores where this technology has been deployed.
