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 expanded its AI integration from inventory and supply demand forecasting in Q4 2023 to deploying a generative AI employee chatbot 'Store Companion' by mid-2024, significantly increasing in-store operational efficiency by Q3 2024.
  • By late 2024 and into 2025, Target introduced AI-powered personalized customer experiences such as the Bullseye Gift Finder and AI-driven digital and social media tools to enhance product discovery and online sales, reflecting a strong adoption of generative AI for CX improvement and revenue increase.
  • Throughout 2025, Target is leveraging AI in retail media advertising optimization and continues to innovate AI capabilities internally, including foundational AI approaches in healthcare-related applications. There are also indications of learning from initial AI experimentation to refine deployment strategies.

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5 AI Use Cases at Target

Digital Marketing Optimization
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Target applies AI to optimize ad placements across platforms like Google, Meta, and Pinterest to prioritize and adjust ads dynamically, enhancing advertising effectiveness. [1]
Personalized Shopping
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Target uses generative AI to deliver personalized product recommendations and shopping experiences, including tools like the Bullseye Gift Finder that help customers discover gifts based on preferences. [1][2]
Employee Assistance
2024
Traditional
Generative
Agentic
Outcome
Target deployed a generative AI 'Store Companion' chatbot to assist store employees with training, problem-solving, and quick access to on-the-job information, improving operational efficiency. [1][2][3]
Demand Forecasting
2023
Traditional
Generative
Agentic
Outcome
Costs
Target uses AI to accurately forecast guest demand for specific products both in stores and online, ensuring optimal inventory placement during peak seasons like the holidays. [1]
Inventory Accuracy
2023
Traditional
Generative
Agentic
Outcome
Costs
Target develops AI systems to infer and correct inventory inaccuracies by analyzing underlying data patterns to improve product availability. [1]

Timeline

2025 Q4: no updates

2025 Q3

1 updates

Target expanded AI applications to retail media ad optimization via its Roundel platform and continued innovation in AI foundational approaches, including healthcare electrocardiography and military target tracking adaptations.

2025 Q2

1 updates

Despite early AI deployment challenges, Target committed to deepening AI use to enhance holiday shopping experiences.

2025 Q1

1 updates

Target leveraged generative AI combined with social media strategies to improve digital experiences and product discovery for customers.

2024 Q4

1 updates

Target launched AI-powered personalized shopping tools such as the Bullseye Gift Finder and employed AI for shopper segmentation and digital grocery sales enhancement.

2024 Q3

1 updates

Full chain deployment of the Store Companion generative AI tool completed, with Target CFO noting increased worker efficiency; AI continues to transform retail operations and customer experience.

2024 Q2

1 updates

Target announced and began rolling out a generative AI chatbot called 'Store Companion' to assist frontline employees, enhancing training and problem resolution capabilities across stores.

2024 Q1

1 updates

Early 2024 reports highlight AI's role in analyzing and retrieving insights relevant to target identification, setting the foundation for more business-centric AI deployment.

2023 Q4

1 updates

Target utilized AI for holiday supply demand forecasting, product availability accuracy, and enhancing personalized customer experiences during the holiday season.