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 been steadily integrating AI technologies across its operations from 2019 through early 2026, with significant advances in inventory management, employee scheduling, customer personalization, and supply chain efficiency. Key leaders like CEO Ron Vachris have emphasized a 'very Costco way' approach to AI adoption.
Home Depot has progressively integrated AI technologies since 2021, evolving from backend operational support and inventory management improvements toward advanced generative AI tools like Magic Apron by 2025, resulting in enhanced customer experience, online sales growth, and in-store efficiency.
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.
CVS Health has steadily expanded AI integration across its operations since 2021, evolving from data analytics for personalized pharmacy services to deploying AI-driven customer engagement and operational efficiency initiatives, projected to deliver significant cost savings and enhanced patient experiences by 2026.
Walgreens has progressively integrated AI technologies across healthcare services, pharmacy operations, and retail marketing from 2019 to early 2026, highlighting partnerships with Microsoft, Nuance, and Freenome, and expansions in AI-driven robotic prescription fulfillment covering 60% of its stores by 2025.
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 2022 to 2025, Lowe's has progressively integrated AI across multiple facets of its retail operations, evolving from innovative digital twin technology to comprehensive AI-driven virtual assistants and store optimization tools.
Best Buy has aggressively integrated AI technologies from Q2 2024 onwards, focusing initially on generative AI to revolutionize customer support, partnering with Google Cloud and Accenture, leading to improved personalized support and partial automation, alongside significant workforce restructuring.
Walmart's AI adoption has accelerated from AI-enhanced inventory and customer experience improvements in 2023, to deploying advanced generative and agentic AI by 2025, including proprietary platforms like Element and AI assistants such as Sparky, impacting nearly all aspects of retail operations.
49 Use Cases in Retail
| Company | Use Case |
|---|---|
| Kroger | Personalized Shopping 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. generative |
| Home Depot | Last-Mile Logistics Leveraging agentic AI and Google Maps Platform, Home Depot optimizes delivery routes in real-time, forecasting delays and proactively adjusting routes to improve delivery speed and reliability. agentic |
| Walgreens | Retail Personalization Walgreens utilizes AI to enhance retail media capability by partnering with Rokt to provide advertisers with highly targeted engagement opportunities based on pharmacy, retail, and photo customer data. generative |
| Home Depot | Project Estimation The AI-powered Blueprint Takeoffs tool automates material list generation and provides fast quotes for large home improvement projects, assisting professional contractors in bidding and planning workflows. agentic |
| Walmart | Customer Assistance Sparky, a generative AI-powered shopping assistant, provides conversational and personalized support to customers, enhancing the shopping experience online and in stores. agentic |
| Lowes | Inventory Forecasting Lowe's implemented AI-driven forecasting and replenishment solutions in partnership with RELEX Solutions and Accenture, effectively reducing inventory levels and improving margins by optimizing stock levels and SKU rationalization based on demand predictions. traditional |
| Target | Trend Spotting AI tools help Target identify and respond to merchandise trends faster, enabling better stock decisions and marketing strategies to match consumer preferences dynamically. traditional |
| Costco | Inventory Forecasting Costco uses AI to predict product demand by feeding sales data, supplier lead times, weather variables, and regional patterns into machine learning models to optimize replenishment and reduce overstock or stockouts. traditional |
| Walmart | Employee Training Walmart invests in AI skills training programs for its workforce, including partnerships with OpenAI, to prepare employees for AI-integrated roles and job transformation. traditional |
| Costco | Customer Personalization AI personalizes the shopping experience by analyzing member data to offer tailored recommendations, exclusive perks, and improve overall customer satisfaction and loyalty. generative |