Sam's Club stores is axing all self-checkouts from its  600 stores — in favor of a futuristic but controversial new technology.

The Walmart-owned warehouse chain, often seen as Costco's biggest rival, is rolling out AI-powered 'Scan & Go' tech that lets shoppers skip the line and walk straight out the door once they're done shopping. 

But the move is controversial because it uses a network of cameras and sensors to track shoppers and their carts.  

In addition, the checkout-free experience requires all customers to use a smartphone and download the store’s app.

This could pose a challenge to older shoppers who may struggle with technology. 

The shake-up is aimed at reducing checkout wait times as it eliminates the need for an employee to check receipts at the exit. 

Customers will shop  scan the product barcodes as they go around the store, put the item in their cart and then pay for the items in the app when they are done.

Rather than go to a register, they exit through an airport-style scanner with AI cameras that analyze carts to make sure all items in there have been scanned and paid for. 

'This is one of the fastest, most scalable transformations happening in retail today,' Sam's Club President and CEO Chris Nicholas said at the company's investor day on Friday. 

'We're investing with intention — in our fleet, our associates and the member experience — to become the world's best club retailer.

'My hope is that Sam's Club, when you shop, feels like what it's like to shop in the future, this is a glimpse of that,' Nicholas said previously. 

Last year, Walmart scrapped self checkout lanes in some of its stores amid a spike in customer complaints and theft. 

Experts say the retail giant may be testing this new AI-driven model at Sam’s Club before rolling it out across Walmart locations.

Sam's Club is a direct rival to Costco, with a similar membership-based structure. 

The retailer recently overtook Costco in the annual American Customer Satisfaction Index making it the nation's favorite warehouse club. 

Costco began as Price Club in 1976, and today has more than 800 locations worldwide.  

Sam's club was founded April 1983 by Walmart to counter the success of Costco.

Sam's Club membership is $50 a year, or its premium offering is $110 a year - both $10 less than its rival.  

In 2020, Amazon introduced its Amazon Go stores, which allow shoppers to simply leave a location and be automatically charged on their Amazon account for the items they have taken.

According to the retailer's website, there are only 23 Amazon Go stores across the US. 

Meanwhile, officials have issued an urgent warning about a sophisticated self-checkout scam targeting customers’ credit card information.

After recent alerts of skimmers appearing at Walmart and Kroger stores, scammers are now targeting gas stations.

The latest discovery is of a skimmer at a Sheetz self-checkout in Beavercreek, Ohio.