You can be on Entrepreneur’s cover!

Walmart Is Using AI to Prevent Checkout Theft Over 1,000 stores are using computer vision tech to watch checkouts and ensure no item ever goes unscanned.

By Matthew Humphries

entrepreneur daily

This story originally appeared on PCMag

via PC Mag

In a bid to cut down on theft and mistakes, Walmart is using artificial intelligence hooked up to cameras monitoring checkouts to ensure every item in your cart is scanned and paid for. This is already happening at over 1,000 Walmart stores.

As Business Insider reports, the system is known internally as Missed Scan Detection and uses computer vision to monitor both manned and self-checkout areas at each store. The system is able to detect when an item goes unscanned, or is mis-scanned, and reports the fault to a checkout attendant who can then approach and rectify the problem.

According to Walmart spokeswoman LeMia Jenkins, "Walmart is making a true investment to ensure the safety of our customers and associates ... Over the last three years, the company has invested over half a billion dollars in an effort to prevent, reduce and deter crime in our stores and parking lots. We are continuously investing in people, programs and technology to keep our stores and communities safe."

When store inventory disappears without being paid for it's known as "shrink." This can happen through theft or mistakes and retailers are obviously very keen to reduce it as much as possible. If Walmart experiences the average for US retailer shrink rates, then it's losing roughly $4 billion a year. With that in mind, you can see why heavy investment and embracing AI to reduce shrink is worthwhile for the company.

One of the companies supplying Walmart with the computer vision tech required to make checkout monitoring possible is Everseen. According to Everseen CEO Alan O'Herlihy, "People make mistakes ... In terms of shrinkage, or loss, that's the main source." And if you're wondering which item causes the most problems, it's milk. O'Herlihy explains, "People find it hard to scan milk ... Sometimes they get frustrated and they just don't scan it."

Matthew Humphries

Senior Editor

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.

Business News

Microsoft's New AI Can Make Photographs Sing and Talk — and It Already Has the Mona Lisa Lip-Syncing

The VASA-1 AI model was not trained on the Mona Lisa but could animate it anyway.

Living

Get Your Business a One-Year Sam's Club Membership for Just $14

Shop for office essentials, lunch for the team, appliances, electronics, and more.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.