Target is the latest retailer to equip its workforce with generative artificial intelligence tools aimed at improving the in-store experience for employees and shoppers.
The company said Thursday it has developed a chatbot called “Store Companion” that will appear as an app on store employees' mobile devices and can provide instructions for tasks such as restarting registers or enrolling customers in the company's loyalty program. The idea is to give employees “confidence in serving our customers,” Target Chief Information Officer Brett Craig said in an interview.
Target is testing the device in 400 stores and plans to roll out the app to most employees in its roughly 2,000 stores by August.
As the retail industry experiments with generative AI, some believe it could eventually make shopping in a brick-and-mortar store feel more like shopping online, said Roy Singh, global head of advanced analytics at Bain & Company, which works with retailers on generative AI initiatives.
Retailers are personalizing online shopping for customers, including by using predictive technology to suggest products to buy. Shoppers also find e-commerce more convenient than visiting a store and finding a sales associate. The Target app aims to make it easier for associates to quickly respond to shoppers' questions.
Craig says he's often asked whether these tools will replace workers. “I believe the relationship between humans and technology is incredibly important,” he says. “We're here to make sure people have the right tools to do their jobs.”
Walmart recently expanded the AI tools it began using at its headquarters last summer to its retail stores, rolling them out to 13,000 Sam's Club store managers.
Despite the huge investment and hype surrounding generative AI, some retailers have abandoned failed experiments with the technology.
“We're still on that growth curve — learning, failing and relearning — as we try to adopt at scale,” said Duleep Rodrigo, U.S. consumer and retail leader at KPMG.