11:04 AM EDT, 10/15/2025 (MT Newswires) -- Walmart's ( WMT ) partnership with Microsoft ( MSFT )-backed (MSFT) OpenAI may "intensify competition" and "fundamentally reshape" the consumer-packaged goods sector, Deutsche Bank said Wednesday in a note.

The partnership, announced Tuesday, allows Walmart ( WMT ) customers to shop through ChatGPT using a feature called Instant Checkout.

"We see this as a clear advancement in retailer strategy towards fuller-scale agentic AI-based commerce," Deutsche Bank said.

While still early, the rise of agentic AI in product recommendations may pose "potentially significant, if not existential challenges" for traditional consumer-packaged goods brands, the report said.

Brands that fail to adapt may become "invisible" in an AI-enhanced shopping environment, Deutsche Bank said.

Walmart ( WMT ) shares rose 2% in Wednesday trading, and Microsoft ( MSFT ) climbed 0.5%.

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