I’m the Sam’s Club CEO and I’ve got an AI leadership reality check: let purpose, not promise, guide investment

The rise of artificial intelligence in all its forms and its impact on business and people is one of the most transformative moments of our time. As AI reshapes our organizations, how we choose to embrace it will define not just our businesses – but also the next generation of leaders.

This is exactly the topic addressed when I recently led a discussion with other CEOs around AI’s impact on business. As AI becomes more prevalent, a clear strategy and intentional leadership will be essential to driving adoption and mass utilization.

While AI’s potential is enormous, cross-industry data indicates that as many as 95% of AI deployments fail to yield significant results. Meanwhile, negative headlines about workforce changes place blame on AI when this can often mask more nuanced business challenges. The questions I most often hear from other business leaders include hi: When will investments in AI deliver an ROI? When will it improve performance? And what does it mean for our people?

Successfully shifting from experimentation to meaningful impact depends on how companies apply these technologies. While many companies have struggled to find early success, our AI journey over a number of years at Sam’s Club has proven to be more successful. It has changed how we operate our business, how our associates work, and how our members shop with us.

When other leaders hear about Sam’s Club’s AI progress, they often ask me how they should think about applying AI and managing the impact on their business. My answer is simple: by grounding every decision in purpose.

Lead with what defines your business

Change is constant, and AI is accelerating that change even faster. In moments like this, leaders must find and hold steady to purpose — and let core principles guide every decision to navigate whatever comes next.

At Sam’s Club, our technology decisions are grounded in something that is core to who we are across Walmart: which includes these key words: We are people-led and tech-powered. Technology serves people, not the other way around. Ever. With that as our compass, we’re guided to integrate AI in ways that create more meaningful, connected experiences for our more than 100,000 Sam’s Club associates and the millions of members they serve.

When investing in AI, start with the biggest points of friction for your business, your people, and your customers. For us, one example was our exit. Members told us the process to leave our clubs took too long. So we developed and scaled AI-powered computer vision technology that scans carts in milliseconds so members can simply leave the club. No waiting in line for manual receipt checks.

In less than a year, we went from pilot to full rollout across all 600 clubs. Exit times are now 23 percent faster, three in four members enjoy friction-free experiences, and customer satisfaction continues to rise.

Empower People, Elevate Experiences

But AI’s value isn’t just measured in metrics—it’s also reflected in the impact on our people. The same technology powering our exit arches has also automated repetitive tasks that our associates used to perform, such as walking through the club with a clipboard and manually taking inventory. For retailers, inventory has always required considerable time from people, and our associates would walk up to several miles a day. Now, autonomous floor scrubbers equipped with AI and computer vision handle inventory updates, and this technology has eliminated more than 200 million tasks, freeing time for associates to focus on the uniquely human task of serving members. With that extra time, something special happens: We find associates are more likely to build stronger relationships with their peers, which is a key step in developing a long, fulfilling career. It also translates to more empowerment, higher engagement, better associate retention, more fulfilling careers, and a higher member net promoter score.

AI’s real promise lies in the democratization of these technologies. It shouldn’t sit only with technical experts or behind corporate approvals. It should be in the hands of people who make decisions every day.

That’s why we’ve armed all our field leadership with access to ChatGPT, giving them enterprise-grade AI tools to identify local trends, analyze member feedback, and run their multi-million-dollar businesses more effectively. And now, through Walmart’s partnership with OpenAI, Sam’s Club members can find and buy products right within the ChatGPT experience, making shopping as easy as having a conversation.

Harness a Generational Opportunity

These examples aren’t isolated successes. They show that when AI is guided by purpose and when technology is in service of people, it unlocks better outcomes for everyone. We see these as lessons that business leaders in companies of all sizes and industries can put to use.

AI is reshaping every industry. And with retail supporting more than one in four jobs in America, we have a unique view of how technology can help people thrive in the future. We believe that developing these tools effectively will empower people, unlock opportunities, and create meaningful jobs.

As business leaders, we should focus not on the technology, but let purpose guide us on how AI can enhance work, elevate experiences, and create new opportunities. Augment tasks, don’t just automate them. Reimagine careers, lead with optimism and purpose, not fear. At Sam’s Club, that mindset is transforming our business, and it can yours as well.

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This story was originally featured on Fortune.com