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 2019 through 2025, advancing from initial predictive models for inventory and bakery needs to sophisticated AI-powered supply chain optimization, demand forecasting, and personalized customer experiences.
The Home Depot has progressively integrated AI from 2021, evolving from backend operations support to sophisticated AI-driven customer experience enhancements and supply chain optimizations, contributing to $151 billion in annual revenue by 2025.
From Q4 2023 through late 2025, Target has significantly expanded AI adoption from inventory management and demand forecasting to employee support and customer shopping personalization, with generative AI tools like the Store Companion chatbot and Bullseye Gift Finder playing key roles.
Since 2021, CVS Health has progressively integrated AI and machine learning to enhance healthcare delivery, focusing on personalized pharmacy services, data-driven outreach, and optimizing customer experience, contributing to improved medication adherence and service efficiency.
Since 2019, Walgreens has progressively integrated AI technologies to enhance healthcare services, retail operations, and pharmacy management, forming key partnerships including Microsoft and Nuance for AI-driven healthcare innovations.
Kroger has consistently expanded its AI capabilities from early adoption of EDGE (Enhanced Display for Grocery Environment) in 2019 to advanced AI-driven dynamic pricing, inventory management, and customer experience tools by 2025, including partnerships with Everseen, Google Cloud, Intelligence Node, Instacart, and Ocado.
Lowe's has progressively integrated AI technologies from Q3 2022 through 2025 to enhance customer experience, associate productivity, and operational efficiency, launching key initiatives like the Mylow virtual home improvement assistant, AI-powered store digital twins, and AI-driven inventory management.
Best Buy accelerated AI adoption starting Q2 2024, launching generative AI-enhanced customer support tools in partnership with Google Cloud and Accenture, notably involving CEO Corie Barry and executive Brian Tilzer, accompanied by workforce reductions linked to AI implementations.
Walmart has increasingly deployed advanced AI technologies including generative AI, agentic AI, and foundation models since mid-2023, leading to transformative improvements in customer experience, operational efficiency, and workforce productivity. Key products include the Sparky AI shopping assistant and AI-driven supply chain solutions handling over 850 million product data points with personalization and faster on-trend product launches.
50 Use Cases in Retail
| Company | Use Case |
|---|---|
| Lowes | Inventory Forecasting Through partnerships with RELEX Solutions and Accenture, Lowe's uses AI-driven forecasting and replenishment technology to optimize inventory levels, reduce stock, and increase margins by cutting SKU complexity. traditional |
| Kroger | Conversational Shopping Assistant Kroger partnered with Instacart to implement a conversational AI Chatbot (Cart Assistant) that helps customers discover meal ideas, plan purchases, and build shopping baskets via natural language interaction. generative |
| Costco | Membership Analytics Costco applies AI analytics on membership data to identify high-value executive members and tailor exclusive perks, thus increasing membership upgrades and retention revenue. traditional |
| Kroger | Automated Fulfillment Optimization Kroger employs AI-driven robotic fulfillment centers powered by Ocado and AI factory processes to accelerate order fulfillment speed and accuracy, though automation strategy was under strategic review by 2025. agentic |
| Home Depot | Demand Forecasting Home Depot applies sophisticated predictive analytics analyzing historical sales, market trends, and seasonal patterns to forecast product demand, optimize pricing and supply chains, and reduce inventory waste. traditional |
| Walmart | Customer Support Automation Implementation of AI-powered chatbots and agents to reduce customer support resolution times by up to 40% and enhance online shopping convenience. agentic |
| Target | Marketing Optimization Target uses AI within its Roundel retail media network to prioritize and dynamically adjust ad placements across multiple platforms based on consumer data, improving advertising effectiveness. traditional |
| Walmart | Supply Chain Automation Walmart leverages AI and real-time automation to monitor, detect, diagnose, and correct supply chain issues globally, improving stock accuracy and order fulfillment speed. agentic |
| Lowes | Demand Forecasting Lowe's applies machine learning models to predict product trends and optimize pricing and merchandising strategies, reducing shrink and improving supply chain effectiveness. traditional |
| CVS Health | Care Pathway Optimization CVS's Aetna utilizes AI-powered care path technology to assist members with chronic conditions like diabetes, connecting them with tailored care options to improve health outcomes. traditional |