Rudy Lai

AI @ Target

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

Summary

  • Target has progressively integrated AI across retail operations from Q4 2023, starting with inventory accuracy and customer personalization, moving to generative AI-powered employee support tools by Q2 2024, and further expanding personalized shopping experiences and in-store efficiencies through late 2024 and 2025.
  • Key initiatives include the launch of the GenAI 'Store Companion' chatbot for frontline employees improving worker efficiency as confirmed by Target’s CFO by Q3 2024, and the Bullseye Gift Finder launched in Q4 2024 enhancing personalized product recommendations online.
  • By 2025, Target is leveraging AI to optimize retail media ad placements, social media-driven digital experiences, and targeted health applications (TARGET-AI), but also has begun workforce reductions due to AI reshaping retail tasks, signaling both transformative benefits and operational challenges.

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5 AI Use Cases at Target

Health Screening
2025
Traditional
Generative
Agentic
Outcome
Risk
Target applies AI in healthcare through TARGET-AI, an approach leveraging electronic health records and multimodal data for context-aware AI electrocardiography deployment. [1][2]
Digital Marketing
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Target integrates AI to optimize ad placements across platforms such as Google, Meta, and Pinterest within its Roundel retail media network, increasing marketing efficiency and conversion. [1]
Personalization
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Target employs AI-powered tools like the Bullseye Gift Finder and shopper segmentation to provide personalized product recommendations online and in-store, enhancing customer experience. [1][2]
Employee Support
2024
Traditional
Generative
Agentic
Outcome
Costs
Target developed the 'Store Companion' generative AI chatbot to assist store employees with on-the-job process questions, coaching, and operational problem-solving to boost efficiency. [1][2]
Inventory Accuracy
2023
Traditional
Generative
Agentic
Outcome
Costs
Target uses AI to analyze underlying data patterns to infer and correct inventory inaccuracies systematically, improving product availability and reducing stock-outs. [1]

Timeline

2025 Q4

2 updates

AI-driven workforce restructuring led to significant corporate job cuts at Target alongside continued advancements in AI health screening tools.

2025 Q3

3 updates

Target extended AI capabilities to Roundel retail media with AI-driven ad placement optimizations, continued AI usage in ecommerce, and introduced AI-based healthcare applications (TARGET-AI).

2025 Q2

1 updates

Following experimental setbacks, Target recommitted to using AI to enhance the holiday shopping experience, emphasizing improved technology application.

2025 Q1

1 updates

Target leverages generative AI combined with social media to curate digital experiences and product discovery for customers, enhancing marketing personalization.

2024 Q4

2 updates

Target introduced the generative AI Bullseye Gift Finder online tool to personalize gift recommendations, expanding AI's customer-facing digital shopping personalization.

2024 Q3

2 updates

Full rollout of generative AI tools driving improved employee efficiency and customer experience in stores; CIO Brett Craig championed AI-driven innovation culture.

2024 Q2

4 updates

Target launched the generative AI-powered 'Store Companion' chatbot to assist store employees and drive operational improvements; expanded AI for personalized shopping and training, marking a significant generative AI deployment.

2024 Q1

1 updates

Limited coverage primarily about AI's role in target identification in research contexts, not directly related to Target Corporation retail activities.

2023 Q4

4 updates

Target initiated AI adoption focusing on improving product availability through data-driven inventory management and enhancing customer personalization during holiday peak periods.