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 technologies from 2023 through 2025, focusing on demand forecasting, inventory optimization, employee scheduling, and customer experience improvements, leveraging their large membership data and operational scale.
Home Depot has significantly expanded its AI adoption since 2021, evolving from initial AI applications improving customer experience (notably led by Huiming Qu and Michael Carpenter) to broad integration across inventory management, store operations, and customer engagement by 2025.
Target has progressively integrated AI across its retail operations from late 2023 through 2025, focusing on personalized shopping experiences, inventory management, employee enablement, and advertising optimization.
CVS Health has steadily increased its AI adoption since early 2021, progressing from initial data analytics and machine learning personalization efforts to advanced AI applications including AI-powered chatbots, personalized healthcare apps, and AI-driven operational efficiencies by 2025.
Walgreens Boots Alliance has progressively integrated AI from 2019 onward, collaborating with major partners like Microsoft and Nuance to enhance healthcare delivery, customer service, and operational efficiency through AI-driven vaccine scheduling, medication adherence improvements, and voice-powered technologies.
Kroger has progressively integrated artificial intelligence technologies across many facets of its operations since 2019, including in-store digital displays (Kroger EDGE), self-checkout error reduction using Everseen's Visual AI, AI-powered personalized recipe recommendations (Chefbot), dynamic pricing, and marketplace product listing optimization.
Lowe's has progressively integrated AI from Q3 2022 with their industry-first Digital Twin through extensive AI-powered solutions up to 2025, including collaborations with Nvidia and OpenAI.
Best Buy has progressively integrated AI technology from Q2 2024 through 2025, focusing initially on generative AI-powered customer support tools including virtual assistants for troubleshooting, leading to substantial improvements in customer service efficiency and experience.
Walmart has progressively scaled AI adoption from foundational inventory management in 2023 to agentic AI and generative AI tools by 2025, enhancing both customer experience and internal efficiencies across its 2.1 million global workforce.
60 Use Cases in Retail
| Company | Use Case |
|---|---|
| Walgreens | Retail Media Walgreens expands its retail media ecosystem partnering with Rokt, using AI to enable advertisers to engage pharmacy and retail customers at meaningful moments, thus driving incremental ad revenue and personalized marketing. traditional |
| Lowes | Inventory Forecasting Lowe's utilizes AI-driven forecasting and replenishment tools from RELEX Solutions, implemented with Accenture, to optimize inventory levels, reduce stockouts and overstock, and improve margins through accurate demand prediction. traditional |
| Walmart | In-Store AI Tools Introduction of AI-powered tools in physical stores enhances shopper experiences and operational effectiveness during peak shopping seasons. generative |
| Kroger | Conversational Shopping In partnership with Instacart, Kroger offers AI-powered chatbot assistants that help customers build shopping baskets through natural language conversation, blending product discovery and purchase flow both online and in-store. agentic |
| Home Depot | Contractor Estimation The AI-powered Blueprint Takeoffs tool helps professional contractors by automatically generating accurate material lists and project quotes from blueprints, saving time and improving bidding accuracy. agentic |
| Walmart | Supply Chain Automation Walmart uses layered AI and automation technologies to monitor and automatically correct supply chain issues in real time, optimizing efficiency and reducing disruptions. agentic |
| CVS Health | Healthcare Navigation Aetna's conversational AI assistant helps members navigate their health care journey by providing personalized support, improving access and satisfaction through digital-first engagement. traditional |
| Walmart | AI-First Shopping Experience Collaborations with OpenAI incorporate ChatGPT-driven conversational agents like Sparky into Walmart’s digital platforms, offering personalized shopping assistance through chat. generative |
| Costco | Membership Perks AI supports enhancement of member loyalty programs, including exclusive perks and executive membership benefits, by analyzing member behavior and optimizing membership value propositions. traditional |
| Walmart | Workforce Training Walmart partners with OpenAI and invests in staff education to prepare millions of employees for AI-integrated roles, emphasizing upskilling and adaptation. traditional |