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 from 2019 onwards, evolving from experimentation in supply chain and inventory management to extensive use in employee scheduling, demand forecasting, retail media, and customer personalization by early 2026.
Home Depot has progressively integrated AI technologies from 2021 through early 2026, evolving from backend store support and inventory management to advanced generative AI customer assistance and agentic AI tools, contributing to over $151 billion in annual revenue by enhancing personalized shopping experiences, inventory efficiency, and professional contractor support.
Target has progressively integrated AI tools from 2023 through early 2026, evolving from improving inventory accuracy and demand forecasting to deploying generative AI chatbots (Store Companion) for store workers and personalized customer experiences such as the Bullseye Gift Finder and integration with ChatGPT. Key figures include CIO Brett Craig and COO Prat Vemana. AI adoption is strong and growing, with full chain rollouts and expanding external customer-facing tools.
CVS Health has progressively integrated AI across its healthcare services from 2021 through early 2026, focusing on data analytics, machine learning personalization, and AI-driven customer engagement to enhance patient outcomes and operational efficiencies.
Since 2019, Walgreens has progressively integrated AI technologies to enhance both operational efficiency and customer experience, including partnerships with Microsoft and Nuance, adoption of voice-powered AI, and AI-driven medication adherence programs boosting adherence by 5.5%-9.7%.
Kroger has progressively expanded its AI adoption from 2019, initially focusing on in-store technology like Kroger EDGE and visual AI for self-checkout error reduction, scaling to over 2,500 stores by 2020-2022 with partnerships such as Everseen and Lenovo.
Lowe's has progressively embraced AI from 2022, beginning with digital twin technology and advancing to generative AI and AI assistants, significantly enhancing both customer experience and internal operations.
Best Buy has steadily integrated AI technologies from Q2 2024 onwards, emphasizing generative AI-driven customer service improvements with partnerships involving Google Cloud and Accenture, supported by CEO Corie Barry's leadership.
Walmart has rapidly scaled AI adoption from foundational machine learning in 2023 to advanced generative and agentic AI by 2025-2026. Key innovations include AI-powered personalized shopping assistants like Sparky, AI-driven hyper-personalization of ecommerce, and AI-supported supplier negotiations involving 89 suppliers.
52 Use Cases in Retail
| Company | Use Case |
|---|---|
| Walgreens | Virtual Healthcare Walgreens offers virtual weight management programs with video consultations and medication management, expanding its AI-enabled personalized healthcare services. generative |
| Kroger | Personalized Shopping By leveraging Google Cloud’s Gemini Enterprise and generative AI models, Kroger offers personalized shopping and meal planning agents to simplify shopping experiences and tailor recommendations based on customer preferences. generative |
| Home Depot | Last-Mile Delivery Using agentic AI integrated with Google Maps Platform and Gemini, Home Depot optimizes last-mile delivery routes by predicting and preventing delays, ensuring timely shipments and cost-efficient distribution. agentic |
| Costco | Pharmacy Management AI autonomously manages pharmacy inventory by comparing drug stock with demand forecasts, improving in-stock rates to over 98% and supporting mid-teen percent growth in filled prescriptions. agentic |
| Walgreens | Retail Media Walgreens integrates AI into its retail media ecosystem to deliver personalized ad targeting and audience engagement, boosting advertiser ROI and customer relevance. traditional |
| Home Depot | Project Estimation AI-powered tools generate accurate blueprint takeoffs and material lists for professional contractors, reducing project planning time and minimizing errors, enhancing contractor productivity and satisfaction. agentic |
| Kroger | Conversational Shopping Kroger partners with Instacart to offer a conversational AI assistant (Cart Assistant) that helps customers discover products, build shopping baskets, and plan meals using natural language interactions. agentic |
| Lowes | Inventory Forecasting Using AI-driven forecasting and replenishment technology from RELEX and Accenture, Lowe's reduces inventory carrying costs and improves SKU management, boosting margins and supply chain efficiency. traditional |
| Target | Customer Engagement Through partnership with OpenAI, Target integrates its app into ChatGPT, providing users personalized shopping help and faster checkout, enhancing customer engagement via AI chatbots. agentic |
| Costco | Inventory Optimization Costco uses AI to analyze sales data, supplier lead times, weather patterns, and regional preferences to predict demand and optimize inventory levels, reducing stockouts and overstock. traditional |