The impact of artificial intelligence adoption on firm performance: A comparative analysis of Amazon and Walmart.

Abstract

This study examines the relationship between artificial intelligence (AI) adoption and business performance through a comparative analysis of Amazon and Walmart over the period 2015–2023. The research aims to investigate whether higher levels of AI integration are associated with improved financial performance, growth, and profitability. The study is based on secondary financial data collected from annual reports and financial databases, using key performance indicators including revenue growth, return on assets (ROA), and return on equity (ROE). The findings reveal that Amazon, as a highly AI-driven company, experienced significantly higher revenue growth compared to Walmart, reflecting the role of AI in enhancing scalability, operational efficiency, and market expansion. However, the analysis also indicates that Amazon’s profitability measures are more volatile, largely due to continuous reinvestment in technology and infrastructure. In contrast, Walmart demonstrates more stable profitability and financial consistency despite slower growth rates. The study concludes that AI adoption is more strongly associated with long-term growth and scalability than with immediate short-term profitability. The results further suggest that the effectiveness of AI depends on how firms integrate technological innovation into their broader business strategies. Although AI provides competitive advantages and operational improvements, its financial benefits may require time to materialize. The study contributes to the growing literature on AI and firm performance and highlights the importance of strategic management in maximizing the value of AI investments.