Target, a major US supermarket chain, has announced plans to introduce Generative AI technology to around 2,000 stores by August this year, marking the first time a major retailer has entered the AI space by introducing a GenAI-powered chatbot.
Dubbed “Store Companion,” the innovative tool is designed to “make team members’ jobs easier and improve the shopping experience,” according to a Target press release. The initiative is part of Target’s broader strategic approach to leveraging Generative AI to empower its teams, improve guest experiences and support long-term growth.
Generative AI typically refers to applications that are built using foundational models. These models consist of large-scale artificial neural networks inspired by the billions of neurons connected in the human brain. Foundational models are the core component of deep learning that describe the many deep layers in a neural network.
According to an analysis by the International Monetary Fund, developments in generative AI are expected to impact around 40% of all jobs worldwide.
Leadership Perspective
“There’s no doubt that technology will continue to play a big role in the future of retail,” said Brett Craig, executive vice president and chief information officer at Target. “With that in mind, we’re continually testing new tools to make our teams’ jobs even easier and help our customers realize more of what they love about shopping at Target. The transformative nature of GenAI is helping us accelerate the rate of innovation across our operations, and we’re excited about the role these new tools and applications will play in driving growth.”
Store Companion Features
The Store Companion AI chatbot will be available as an app on in-store team members’ specially equipped handheld devices to instantly answer questions about processes and procedures. For example, team members can type prompts like, “How do I register a guest for a Target Circle card?” or “How do I restart a register if there’s a power outage?” and receive instructions and resources within seconds.
The tool also serves as a store process expert and coach to help new and seasonal team members learn on the job. To develop this resource, Target’s in-house technology team drew on frequently asked questions and processed documentation from store teams across the U.S. The project progressed from an initial testing phase to a planned rollout in six months.
Target is currently piloting the tool in about 400 stores and is using feedback from these teams to refine the experience ahead of a chain-wide rollout.
Increase team efficiency
“Generative AI is a game-changing technology that simplifies everyday operations and enables our teams to serve our customers with confidence and efficiency,” said Mark Shindell, executive vice president and chief store officer at Target. “This tool gives our teams the time and attention to care for our customers and create a shopping destination that invites moments of discovery, relaxation and everyday delight.”
Jake Seaquist, store manager at one of the test stores in Champlin, Minnesota, agreed, saying, “We’ve received great feedback about the new app. By streamlining everyday tasks, it makes our team members happier, gives them more time to spend with our customers, and improves the customer experience throughout our store.”
Previous AI implementations
Prior to developing this new tool, Target had begun deploying generative AI technology on its website. Thousands of product display pages on Target.com have been enhanced to create a more relevant, guest-friendly experience. Target is also using GenAI to summarize reviews and refine product descriptions to help shoppers make confident purchasing decisions. These enhancements will be applied to more than 100,000 pages by the end of the summer.
Future AI plans
In addition to Store Companion, Target plans to roll out another in-house GenAI tool in the coming months, starting with members of its headquarters team.
Target joins a growing list of established brands that are using AI to improve employee productivity, enhance advertising, and position themselves as tech-forward pioneers. Coca-Cola, for example, began using generative AI for marketing earlier this year. McDonald’s has partnered with IBM to roll out AI-powered voice assistants in more than 100 drive-thru locations starting in 2021.
