Artificial Intelligence in Retail Companies
We analyzed the enterprise AI use cases of 9 retail companies to understand trends, impact, and insights.
Retail companies' adoption of AI
Overview
Costco has progressively integrated AI and machine learning since 2019, with developments accelerating post-2023, enhancing operational efficiencies such as inventory management, employee scheduling, and customer experience.
Home Depot has systematically integrated AI technologies since 2021, evolving from backend data science led by Michael Carpenter to advanced generative AI applications, including the 'Magic Apron' tool launched in early 2025 to enhance online customer service and project support.
Target has progressively entrenched AI across its operations from Q4 2023 to Q1 2026, initially focusing on holiday demand forecasting, inventory accuracy, and customer personalization, then expanding to employee support via generative AI chatbots and digital assistants, with significant rollout completed by Q3 2024.
CVS Health has progressively integrated AI and machine learning across its healthcare, pharmacy, and insurance operations from 2021 through early 2026, culminating in a fully AI-native consumer engagement platform announced in early 2026. Key initiatives include personalized prescription refill campaigns, AI chatbots for customer service, and predictive analytics for optimizing COVID-19 testing and vaccination efforts, contributing to substantial operational efficiency and revenue growth expected to reach $355 billion in 2023.
Since 2019, Walgreens Boots Alliance (WBA) has progressively integrated AI technologies across healthcare services, retail operations, and pharmacy workflows, partnering with major tech firms like Microsoft and Nuance to enhance customer engagement, vaccine scheduling, and personalized healthcare delivery.
Kroger has progressively adopted AI technologies since 2019, beginning with in-store innovations like Kroger EDGE and expanding to AI-powered self-checkout systems using Everseen's Visual AI, improving checkout accuracy and customer experience.
Lowe's has progressively integrated advanced AI technologies across its retail operations from 2022 through early 2026, including launching digital twins and AI-powered assistants like 'Mylow' to enhance both customer service and employee productivity.
Best Buy has progressively integrated AI into its operations from 2024 through early 2026, emphasizing generative AI for customer support, AI-powered delivery tracking, and agentic AI for service automation and operational efficiency.
Walmart has rapidly expanded and matured its AI adoption from 2023 through early 2026, evolving from traditional AI in inventory and customer experience to advanced agentic AI that autonomously supports employees and customers, with initiatives involving generative AI chatbots engaging over 900,000 weekly users and accelerating product development timelines by up to 18 weeks.
52 Use Cases in Retail
| Company | Use Case |
|---|---|
| Walgreens | Virtual Weight Management Walgreens offers a virtual weight management program incorporating AI-driven patient engagement and GLP-1 medication support, including video consultations for adults self-paying for treatment. generative |
| Home Depot | Delivery Optimization Using agentic AI powered by Google Cloud Gemini and Google Maps Platform, Home Depot enhances last-mile delivery routing to predict and prevent delivery delays, improving supply chain reliability and customer satisfaction. agentic |
| CVS Health | Digital Engagement CVS Health developed an AI-native consumer engagement platform and a digital healthcare app integrating prescriptions, spending tracking, and wellness tools to enhance personalized healthcare navigation and member satisfaction. generative |
| Costco | Checkout Optimization The company employs AI to accelerate checkout processes through digital wallets and fast-paced systems, boosting U.S. store productivity and preserving low prices. traditional |
| Walgreens | Retail Media Walgreens expanded its retail media ecosystem with AI-driven targeting and personalization in partnership with Rokt, enabling advertisers to better engage pharmacy and retail customers in meaningful moments. generative |
| Kroger | Supplier Insights Kroger launched AI-generated weekly email digests that provide brand executives and category managers with actionable insights to analyze supplier and product performance efficiently. generative |
| Target | Trend Spotting Target uses AI to analyze market trends and optimize merchandise placement to better match customer preferences and reduce unwanted inventory. traditional |
| Home Depot | Project Estimation AI-assisted tools analyze blueprints and project details to automatically generate complete material lists, quotes, and project plans for professional contractors, increasing efficiency and accuracy in bidding and project management. agentic |
| Walmart | Customer Support AI-powered super agents (e.g., Sparky) handle customer inquiries, product reviews, and purchase recommendations, significantly cutting resolution times and enhancing user engagement with conversational interfaces. agentic |
| Kroger | AI-Driven Fulfillment Kroger uses AI-enabled dynamic batching and robotic fulfillment centers powered by Ocado technology to speed up order processing, reduce pickup lead times, and optimize fulfillment, although warehouse strategy is under reassessment for profitability. agentic |