HBR IdeaCast – Future of Business: Walmart’s CEO on AI, Jobs, and Managing Rapid Change

Date: November 20, 2025
Host: Adi Ignatius (A)
Guest: Doug McMillon, CEO of Walmart (C)
Theme: Exploring how Walmart is navigating AI disruption, talent management, shifting supply chains, and balancing purpose with profit.

Episode Overview

This episode features Walmart CEO Doug McMillon, on the eve of his retirement, reflecting on the challenges and opportunities of leading the world’s largest retailer through unprecedented technological and global changes. The conversation delves into Walmart’s digital transformation, AI integration, workforce upskilling, crisis management, and the company’s evolving mission. McMillon emphasizes the importance of adaptability, transparency, and continual learning in managing rapid change while upholding Walmart’s founding purpose to help people “save money and live better.”

Key Discussion Points and Insights

1. Leading Amid Disruption and Uncertainty

• The Essence of Modern Leadership

  • McMillon stresses the need for both steadfastness and openness to change. The rise of AI is viewed primarily as a growth opportunity.
  • Quote:

    “I think remembering who you are is important, but also being open to change. … We’re excited about the opportunity that AI presents.” (Doug McMillon, 02:08)

• Balancing Offense and Defense with AI

  • Initially, Walmart was cautious, but their orientation has become increasingly growth-focused and aggressive in adopting AI.

2. AI and the Future of Work at Walmart

• AI as Transformation, Not Just Automation

  • The ecommerce experience (search bars, lists) has not changed much since the 1990s but now AI offers a chance to personalize and contextualize shopping.
  • Quote:

    “I really do think that every job we've got is going to change in some way… It will create new jobs… All of those new jobs we've seen already are AI-oriented in some way.” (Doug McMillon, 03:12)

• Upskilling and Democratization of Tools

  • Every associate, from cart pushers to leadership, is being equipped with AI tools—like ChatGPT licenses—to encourage learning and adaptation.
  • Walmart’s goal is to remain a large employer, not shrink the workforce.

3. Walmart’s Changing Purpose and Values

• Evolving “Save Money, Live Better”

  • The company’s core purpose, articulated by Sam Walton, has broadened from simply affordability to encompass time savings, community, sustainability, and healthcare.
  • Quote:

    “These days we obviously think about not only saving people money but saving people time, strengthening community, strengthening the planet, playing a role in healthcare…” (Doug McMillon, 04:53)

• Balancing Purpose and Profit Pressures

  • Walmart made multi-billion-dollar investments in higher wages, ecommerce, and tech, sacrificing short-term profits for long-term transformation.
  • Story: McMillon recalls Walton’s “dancing the hula” on Wall Street after meeting the 8% operating margin—contrasted with periods when margins dipped to invest in the future.
  • Quote:

    “…The shareholders paid for it… so that we could position the company for the future and fulfill our purpose at the same time.” (Doug McMillon, 07:47)

4. Crisis and Supply Chain Management

• Lessons From COVID and Tariff Turbulence

  • McMillon lauds the agility, judgment, and decision-making speed of Walmart’s associates during the pandemic. Delegation and a daily operating cadence became critical.
  • Quote:

    “Before the pandemic, I thought we were moving quicker… but during the pandemic, everything changed, just sped up so much…” (Doug McMillon, 09:06)

• Managing Through Tariffs and Supply Chain Shocks

  • Walmart constantly does “what if” scenario planning, from tariffs on seasonal goods to adapting global sourcing.
  • Example: Halloween costumes—prioritizing children’s over adults’ costumes in uncertain tariff environments.

5. Embedding Continuous Transformation

• How to Avoid Lurching From Project to Project

  • McMillon describes the need to clarify what won’t change (purpose, values) while keeping everything else open for revision.

  • Key values: Respect for the individual, acting with integrity, serving the customer, striving for excellence.

  • Quote:

    “One of the things you have to do as a big company is to set yourself up to change all the time and not just once … constant learning, constant mindset shifts…” (Doug McMillon, 13:52)

• Building New Digital Capabilities

  • Walmart had to adopt new roles (product management, design) and learn from digital natives to remain competitive.

6. Questions from the Audience

a. Who Drives Tech Adoption—Top Down or Bottom Up?

• Both, but Resource and Structure Matter
  • Walmart hired Daniel Danker (from Instacart, Uber, Facebook) to lead AI transformation and ensure structured change management.
  • Quote:

    “While we’re not a company that should be investing to build all this compute… we do need to be the best in the world at application.” (Doug McMillon, 17:12)

b. Structured Upskilling for AI Era

• Walmart Academies and Live Better U
  • Walmart provides structured, company-wide curricula and covers college expenses to prepare the workforce for roles in tech and automation.
  • Example: Technicians certified to service automation systems; some services are even offered externally.

c. Hands-On Leadership

• Stay in Touch with the Front Line

  • Regular, unannounced store visits are core to Walmart’s leadership culture—McMillon often leaves these with extensive to-do lists.

  • Quote:

    “99% of the time, nobody knows we’re coming, including me… The conversations always lead to something.” (Doug McMillon, 21:45)

d. Navigating Environmental & Social Pressures

• Be Practical, Think Long-Term
  • Environmental and social goals align with business value. Example: Realizing the value in cardboard waste (corrugate) led to $50M savings.
  • Quote:

    “I just get really practical… Wouldn’t you expect Walmart to be eliminating its waste? Yes, it helps us save money… It’s a good business choice.” (Doug McMillon, 23:17)

7. Advice for Leaders on Transformation

• Go Faster, Trust Your Gut

  • McMillon reflects on moments he wished he’d moved faster, believing that people can handle more change than leaders often think.
  • Quote:

    “What I’ve learned is that people can handle it. And you need to go hard and you need to go fast. And when you know something’s right in your bones, you need to act on it and don’t delay too much.” (Doug McMillon, 26:04)

• Admit Weaknesses, Stay Dissatisfied

  • Publicly admitting what Walmart wasn’t good at (digital) opened the door to necessary learning and partnerships.
  • “I’m compensated to be dissatisfied. … We just have so much room to improve… this opportunity to get AI right is a great one.” (Doug McMillon, 27:45)

8. Change Management and Employee Buy-In

• Communicate Honestly, Build Trust
  • McMillon jokes about resisting personal change but stresses the need for honesty, consistency, and building relationships—especially in person—to help employees embrace change.
  • Quote:

    “I think being really honest about things is important and being consistent is important … Give people what they need, encourage them, support them, but lean into change because the alternative is not very enjoyable.” (Doug McMillon, 28:54)

Notable Quotes & Memorable Moments

• AI’s Impact on Jobs

  • “I really do think that every job we've got is going to change in some way… It will eliminate some tasks and eliminate some roles. And what we want to do is equip everybody to be able to make the most of the new tools.” (Doug McMillon, 03:12)

• Purpose and Profits

  • “We didn’t ask our customers to pay for it. … It’s really been the shareholders that paid for it.” (Doug McMillon, 07:47)

• Lessons from COVID

  • “We just were forced to delegate more… Don’t wait to act. And wow, they made a lot of really good decisions quickly.” (Doug McMillon, 09:06)

• Continuous Change

  • “If customers don’t want stores in the future, we won’t have stores.” (Doug McMillon, 13:52)

• Frontline Leadership

  • “99% of the time, nobody knows we’re coming, including me.” (Doug McMillon, 21:45)

Timestamps for Important Segments

| Segment | Timestamp | |---------------------------------------------------|:-------------:| | Introduction and Doug McMillon’s Leadership View | 01:50 | | Walmart’s AI Strategy & Impact on Employment | 02:57–04:35 | | Purpose vs. Profit – Corporate Evolution | 04:35–08:19 | | Managing Through COVID and Supply Chains | 08:30–13:29 | | Building Continuous Transformation | 13:29–16:24 | | Audience Q&A: AI, Upskilling, Leadership | 16:24–23:17 | | Advice for Leaders and Embracing Digital | 25:38–28:54 | | Change Management, Honesty & Employee Buy-in | 28:20–30:44 |

Concluding Insights

Doug McMillon’s reflections highlight Walmart’s commitment to staying rooted in its founding purpose while continually reinventing itself in the face of technological, social, and economic upheaval. His leadership approach blends humility, transparency, relentless learning, and a clear-eyed view of the challenges and opportunities that AI and rapid change present.