Rudy Lai
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AI @ Target

Large national chain with broad offerings
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Target has progressively integrated advanced AI technologies from Q4 2023 through Q4 2025, evolving from AI-driven inventory and demand forecasting to generative AI chatbots (Store Companion) empowering store employees, and culminating with personalized customer experiences such as the Bullseye Gift Finder and AI-powered digital marketing via partnerships with OpenAI.
  • Key executives like CIO Brett Craig have championed a culture of innovation using AI, resulting in measurable improvements in employee efficiency and customer experience, including streamlined checkout processes and enhanced inventory accuracy, while also supporting marketing and trend spotting to better adapt merchandise to customer preferences.
  • The company has expanded AI use from internal operations and workforce enablement to customer-facing solutions, with AI solving use cases around personalized product recommendations, inventory management, employee training/support, and digital advertising optimization, reflecting a strategic shift to embed AI comprehensively across Target’s retail ecosystem.

VIBE METER

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

Trend Spotting
2025
Traditional
Generative
Agentic
Outcome
Revenue
AI tools help Target identify and respond to merchandise trends faster, enabling better stock decisions and marketing strategies to match consumer preferences dynamically. [1]
Digital Advertising
2025
Traditional
Generative
Agentic
Outcome
Revenue
Target uses AI to optimize ad placements across platforms like Google, Meta, and Pinterest by prioritizing and adjusting based on data-driven insights to maximize marketing effectiveness. [1]
Personalization
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Target leverages AI-powered tools such as the Bullseye Gift Finder and AI-enhanced digital experiences to provide tailored product recommendations and customized shopping journeys for customers. [1][2]
Employee Support
2024
Traditional
Generative
Agentic
Outcome
The Store Companion generative AI chatbot provides store employees with real-time job-related assistance, coaching, and problem solving to improve operational efficiency and customer service. [1][2]
Inventory Management
2023
Traditional
Generative
Agentic
Outcome
Costs
Target uses AI to detect and correct inventory inaccuracies by analyzing data patterns, ensuring product availability matches customer demand across physical stores and online channels. [1][2]

Timeline

2026 Q1: no updates

2025 Q4

1 updates

OpenAI partnership launches AI-powered Target app on ChatGPT for personalized shopping and faster checkout; new AI tools launched to spot inventory shortages real-time; Target undergoes workforce restructuring with job cuts influenced by AI automation; overall AI adoption intensifies for personalized CX and backend optimization.

2025 Q3

1 updates

Target continues AI expansion with new features in its retail media network Roundel for ad placement optimization and broader internal AI applications; evidence of AI being used for trend tracking and electronic health record research (TARGET-AI) showcasing diversification.

2025 Q2

1 updates

Despite some early challenges, Target recommits to expanding AI usage to enhance holiday shopping experience, signaling strategic emphasis on AI despite risks.

2025 Q1

1 updates

Target integrates generative AI with social media platforms to curate digital experiences and product discovery, leveraging AI to boost customer engagement and further personalization.

2024 Q4

1 updates

Launch of generative AI-powered Bullseye Gift Finder enhances personalized online shopping; AI begins to drive digital grocery sales and personalized marketing; AI tools increasingly impact customer segmentation and product discovery.

2024 Q3

1 updates

Full chain rollout of generative AI tools improving worker efficiency confirmed; CIO Brett Craig leads AI-driven retail transformation focusing on learning culture and employee enablement leading to better customer experiences.

2024 Q2

1 updates

Major rollout planning for generative AI chatbot 'Store Companion' for store employees launched to improve employee training, task support, and in-store assistance, signifying adoption of generative AI to enhance employee productivity and customer experience.

2024 Q1

1 updates

Focus on AI aiding in target identification more broadly in business contexts, evidence of exploring AI beyond retail-specific applications.

2023 Q4

1 updates

Target introduced AI capabilities focusing on inventory accuracy, demand forecasting during the holiday season, and enhancing customer personalization, laying groundwork for AI use in supply management and customer experience.