Rudy Lai

AI @ Kroger

Largest U.S. grocery chain
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Kroger has progressively embraced AI technologies since 2019, advancing from in-store AI displays (EDGE system) to AI-powered self-checkout systems with partner Everseen, leading to a significant reduction (75%) in checkout errors and improved customer experience.
  • From 2023 onward, Kroger expanded AI usage to generative AI tools for dynamic pricing, marketplace product listing enhancements, and AI-driven inventory and fulfillment optimization, including launching AI shopping assistants via partnerships (e.g., Instacart, Google Cloud).
  • Despite broad AI adoption, Kroger faced challenges around its automated warehouse strategy with Ocado resulting in scaling back and $350 million payment, alongside public controversies concerning AI-driven dynamic pricing practices raising privacy and fairness concerns as of late 2024-2025.

VIBE METER

More AI announcements = more VIBE
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5 AI Use Cases at Kroger

Personalized Shopping
2026
Customer Facing
Traditional
Generative
Agentic
Outcome
Kroger leverages generative AI and conversational AI assistants, including partnerships with Instacart and Google Cloud, to help customers discover products, plan meals, and build baskets via chatbots, enhancing convenience and customer experience. [1][2][3]
Fulfillment Optimization
2025
Traditional
Generative
Agentic
Outcome
Costs
Using AI-driven dynamic batching and fulfillment center automation (in partnership with Ocado), Kroger aims to reduce pickup lead times and enhance store associate efficiency, though recent reviews signal strategic reevaluation. [1][2][3]
Inventory Management
2025
Traditional
Generative
Agentic
Outcome
Costs
AI technologies are deployed to optimize inventory levels, reduce shrink, and enhance shrink management processes leading to improved operational efficiency and reduced costs. [1][2]
Dynamic Pricing
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Kroger applies AI algorithms to adjust product prices dynamically based on market analytics and demand forecasting to optimize revenue and competitiveness, though this has raised privacy and fairness concerns. [1][2][3]
Error Reduction
2023
Customer Facing
Traditional
Generative
Agentic
Outcome
Kroger uses AI to detect and reduce customer errors at self-checkout stations, significantly improving checkout speed and accuracy, which enhances the customer experience. [1][2][3]

Timeline

2026 Q1

3 updates

Kroger scales generative AI strategies with Google Cloud's Gemini Enterprise platform to enhance customer shopping and meal planning via AI-powered assistants.

2025 Q4

3 updates

Kroger expands AI-powered digital shopping experiences through a deeper partnership with Instacart offering an AI shopping assistant; agrees to pay $350 million to Ocado amid scaled-back automation plans; ongoing scrutiny of AI-driven pricing and privacy issues.

2025 Q3

3 updates

Kroger accelerates enterprise-wide AI adoption with its AI Factory initiative aiming for faster, safer AI development; online sales near $20B. However, it reviews partnerships with Ocado, scaling back automated fulfillment centers due to ROI concerns.

2025 Q2

2 updates

Scaling AI for inventory and shrink management; notable personnel change as CTO Todd James leaves to start an AI-focused firm, signaling maturation of Kroger's AI team.

2025 Q1: no updates

2024 Q4

1 updates

Kroger continued investment in AI technologies including the EDGE AI system to modernize grocery environments.

2024 Q3

3 updates

Expansion and controversy over AI-driven dynamic pricing system raising privacy concerns and criticism among customers and lawmakers. Continued AI adoption for operational improvements including dynamic batching and inventory optimization.

2024 Q2: no updates

2024 Q1

3 updates

Introduction of AI-powered marketplace enhancements including dynamic pricing and product listing optimization through partnership with Intelligence Node and use of generative AI.

2023 Q4

1 updates

Kroger’s AI technology enabled customers to fix 75% of self-checkout errors without assistance, improving speed and experience. AI also aids crime prevention and rewards.

2023 Q3: no updates

2023 Q2

1 updates

Kroger’s leadership in generative AI and analytics strengthens customer and associate experiences through innovative data applications.

2023 Q1

1 updates

Deployment of Google Cloud data analytics, AI, and machine learning tools to enhance data-driven business decisions.

2022 Q4: no updates

2022 Q3

2 updates

Kroger progressed beyond pilot stages in self-checkout AI solutions with Everseen's Visual AI and Lenovo's AI hardware for edge computing to reduce customer friction and shrink.

2022 Q2: no updates

2022 Q1: no updates

2021 Q4: no updates

2021 Q3: no updates

2021 Q2: no updates

2021 Q1: no updates

2020 Q4

2 updates

Expansion of AI adoption with rollout of Everseen's Visual AI to reduce self-checkout errors. Launch of Chefbot, an AI Twitter tool providing personalized recipe suggestions.

2020 Q3

2 updates

Kroger partnered with Everseen to deploy Visual AI technology to 2,500 stores for self-checkout error detection and reduction.

2020 Q2: no updates

2020 Q1: no updates

2019 Q4: no updates

2019 Q3: no updates

2019 Q2

1 updates

Introduction of Kroger EDGE (Enhanced Display for Grocery Environment) technology in stores, marking initial AI adoption focused on digital shelf displays.