Rudy Lai

AI @ Home Depot

Leader in home improvement
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Home Depot has steadily advanced its AI capabilities from 2021 through 2025, evolving from backend data science applications under Michael Carpenter and Huiming Qu to sophisticated generative AI tools like Magic Apron and extensive use of Google Cloud AI to enhance supply chain and customer experience.
  • By mid-2024, Home Depot was piloting over 175 machine learning and generative AI use cases, and in early 2025 launched AI-powered chat tools to improve online customer engagement and product guidance, significantly contributing to online sales growth and digital transformation.
  • The company faces legal risks related to AI use (Q1 2024 class action lawsuit over privacy issues), yet it continues to aggressively integrate AI across internal operations and customer interfaces, including AI agents aiding store associates, indicating a strong commitment to AI as a strategic enabler.

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5 AI Use Cases at Home Depot

Employee Enablement
2025
Traditional
Generative
Agentic
Outcome
Costs
Home Depot combines AI agents with human expertise to streamline store operations, empower associates with AI-driven insights and tools, and boost productivity. [1]
Customer Support
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Home Depot implements generative AI chatbots and RAG-based systems to assist customer service representatives and directly answer customer inquiries across online and call-center channels. [1][2]
Inventory Management
2024
Traditional
Generative
Agentic
Outcome
Costs
Home Depot uses machine learning and computer vision technologies, including Google Cloud AI, to monitor shelf stock levels, optimize restocking, and improve supply chain efficiency. [1][2]
Product Recommendations
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Revenue
Using AI and machine learning algorithms, Home Depot analyzes customer and purchase data to provide personalized product suggestions to shoppers, enhancing relevance and driving sales. [1]
Supply Chain Optimization
2024
Traditional
Generative
Agentic
Outcome
Costs
Leveraging Google Cloud's AI capabilities, Home Depot enhances the efficiency and responsiveness of its supply chain, including demand forecasting and logistics planning. [1]

Timeline

2025 Q3

2 updates

Home Depot's AI strategy aims at dominance in home improvement retail by integrating AI agents with human expertise to improve operations, empower associates, and enhance customer service, focusing on Pro customers.

2025 Q2

3 updates

Home Depot continues to expand AI and digital tool adoption; CIO Angie Brown leads aggressive scaling of over 175 AI use cases as part of a tech roadmap focused on digital infrastructure, supply chain, and scalable customer platforms; generative AI tools report strong engagement and contribute to online sales growth.

2025 Q1

4 updates

Launch of Magic Apron, a proprietary generative AI tool suite to provide customers with how-to and product answers; introduction of AI-powered chatbot on the website to assist shoppers and increase online sales.

2024 Q4: no updates

2024 Q3

2 updates

Home Depot leverages AI-powered tools for enhanced customer experience via quick, personalized project support and introduces a RAG-based generative AI model to assist call center staff with response generation.

2024 Q2

7 updates

Home Depot expands AI use through extended partnership with Google Cloud, employing machine learning, computer vision, and generative AI to optimize supply chain, inventory, personalized product recommendations and customer experience.

2024 Q1

1 updates

Home Depot faces a class action lawsuit alleging violations of California privacy laws due to its use of AI technologies.

2023 Q4

1 updates

Home Depot has been experimenting with ML and computer vision, including the home-grown Sidekick system, to keep shelves stocked and improve inventory management.

2023 Q3: no updates

2023 Q2: no updates

2023 Q1: no updates

2022 Q4: no updates

2022 Q3: no updates

2022 Q2: no updates

2022 Q1: no updates

2021 Q4

1 updates

Michael Carpenter leads AI and data science efforts to optimize backend store operations across 2,300 stores.

2021 Q3: no updates

2021 Q2

1 updates

Huiming Qu discusses how Home Depot leverages AI to improve customer experience.