Retail giants bring GenAI into their stores

Jul 15

Jul 15 Retail giants bring GenAI into their stores

Retail giants like Target and Walmart are leveraging generative AI in their physical stores to enhance customer and employee experiences. Target’s “Store Companion” app, piloted in 400 stores, aids staff by answering queries and supporting operations, with plans to expand to nearly 2,000 stores by August. Walmart uses AI to scan produce for ripeness and provide handling tips.

These AI implementations aim to streamline store operations, boost productivity, and personalize customer interactions. Despite challenges like integrating digital solutions in a physical environment, retailers are keen on exploring AI's potential to transform the shopping experience.

According to a Salesforce survey, 20% of retailers have adopted generative AI, focusing on customer service, marketing, and store operations. Industry experts foresee AI enhancing personalized experiences and freeing up employees to engage more with customers. However, the journey involves experimentation and adjustments, as seen with Amazon's shift from Just Walk Out technology to smart shopping carts.

As retailers invest in generative AI to upgrade their online shopping experiences, some of the biggest retailers are beginning to use similar features in physical stores — especially to give employees an extra boost.
Retailers have been quickly adopting generative AI, popularized by ChatGPT in November 2022, to provide more personalized search tools and virtual assistants online and to generate marketing content, among other uses. Now, Target, Walmart and Best Buy as well as smaller retailers such as Boot Barn and Tractor Supply Co. have announced plans to launch AI-powered tools to enhance the store experience.
Target is the latest major retail player to join in, announcing an AI tool called Store Companionon June 20. The company is piloting the feature at about 400 stores and plans to roll it out to all of its almost 2,000 stores by August. Walmart, meanwhile, is using internal AI tools to scan produce, determine how ripe the product is and show what to do with it in a dashboard through generative AI, CNBC reported in April. Best Buy announced plans that same month to develop a generative AI assistant to help employees access company resources and product guides.
These programs showcase the various ways retailers are trying to implement AI into their businesses. Generative AI is a popular buzzword in every business right now, but the best way to put the technology into practice is yet to be determined. Duleep Rodrigo, U.S. sector leader for consumer and retail at KPMG, said retailers are still figuring out which use cases work best with customers and, importantly, which of them drive the most productivity gains, growth or savings.