Walmart just launched retail's largest Internet of Things deployment, rolling out millions of battery-free sensors across its entire U.S. supply chain. The move promises to transform how the retail giant tracks 90 million pallets of inventory while feeding real-time data into AI systems for unprecedented supply chain precision.
Walmart just flipped the switch on retail's most ambitious technology deployment yet. The company is rolling out millions of ambient IoT sensors across its entire U.S. supply chain, marking what industry experts are calling the first large-scale ambient IoT implementation in retail history. The deployment, powered by Israeli startup Wiliot, will blanket 4,600 Walmart Supercenters, Neighborhood Markets, and more than 40 distribution centers with battery-free sensors that harvest energy from radio waves, light, and heat. By 2026, these tiny devices will track an estimated 90 million pallets of inventory in real-time - a scale that dwarfs previous RFID attempts. "We expect to be active in about 500 Walmart locations by the end of the year, with plans for national expansion in 2026," Greg Cathey, senior vice president of transformation and innovation at Walmart, told CNBC. The sensors capture temperature, location, humidity, and dwell time data that flows directly into Walmart's AI systems. "By combining continuous sensing with AI, we're moving from probabilistic predictions to precision decision-making," Cathey explained. This isn't just about tracking boxes - it's about fundamentally changing how retail supply chains operate. The technology eliminates manual inventory checks that have plagued retailers for decades. Associates no longer need to hunt for missing pallets or manually verify deliveries. Instead, automated alerts flag issues in real-time, freeing up workers to focus on customers rather than counting. The timing couldn't be better. Supply chain disruptions over the past few years exposed critical blind spots in retail operations, where companies often relied on outdated or projected data rather than real-time visibility. "AI system performance is predicated on its training data. The better the data, the better the AI performance," Julien Bellanger, president of Wiliot, told CNBC. "Supply chain AI has long been fueled by inherently out-of-date data - or forecasted data that represents projections rather than reality." Walmart's deployment represents a dramatic evolution from its pioneering RFID efforts two decades ago. Back in 2004, the retail giant pushed RFID adoption but hit cost barriers that limited widespread implementation. Today's ambient IoT sensors cost significantly less while delivering similar functionality. "We have been here before; Walmart was an early adopter of RFID back in 2004," noted Bill Ray, distinguished vice president analyst at . "However, this time the cost of the tags is much lower, and that will be a tipping point." The business case is compelling. While Walmart hasn't disclosed specific cost savings, the company expects gains from improved supply chain efficiency, better inventory accuracy, reduced manual labor, and faster shelf restocking. Customers should see better product availability and consistency as a result. What makes this deployment particularly significant is its potential to trigger industry-wide adoption. Ambient IoT got a major boost earlier this year when to develop open standards for next-generation, battery-free IoT devices. The technology promises more sustainable and efficient operations compared to traditional battery-powered sensors that require regular replacement. For Wiliot, landing Walmart represents a massive validation. The startup has been developing ambient IoT technology for years, but questions remained about scaling production while maintaining performance and price points. "The question was never if the technology could deliver on its promise," Ray said. "The question was if Wiliot could reliably scale production without compromising tag performance or price, and if it could integrate with existing supply chain systems. This announcement tells us that Walmart is convinced it can, now Wiliot will have to prove it." The deployment's success could reshape retail technology adoption patterns. If Walmart achieves its efficiency goals, competitors will face pressure to implement similar systems or risk falling behind in operational capabilities. The company's massive scale - processing billions of transactions annually - makes it an ideal testing ground for emerging technologies.