Rudy Lai

Artificial Intelligence in Retail Companies

We analyzed the enterprise AI use cases of 9 retail companies to understand trends, impact, and insights.

Costco

Costco has progressively integrated AI technologies from 2019 through 2025, focusing on optimizing inventory management, employee scheduling, supply chain efficiency, and personalized customer experiences, leading to improved operational efficiency and competitive advantage.

Home Depot

Home Depot has progressively expanded its AI adoption from early customer experience improvements in 2021, led by Huiming Qu and Michael Carpenter, to extensive deployment of machine learning and generative AI tools by 2025, including the proprietary Magic Apron suite.

Target

Target has progressively integrated AI technologies from Q4 2023 through mid-2025 to enhance customer personalization, inventory management, and employee efficiency, notably launching the generative AI 'Store Companion' chatbot in 2024.

CVS Health

CVS Health has progressively integrated AI and data analytics across its pharmacy, insurance (Aetna), and retail operations since 2021, aiming to improve personalized care, customer experience, and operational efficiency.

Walgreens

Walgreens Boots Alliance has progressively integrated AI technologies from 2019 through mid-2025, partnering with major tech firms like Microsoft, Nuance, and Palantir to enhance healthcare services, retail operations, and supply chain management.

Kroger

Kroger has steadily expanded its AI adoption since 2019, starting with the introduction of the Kroger EDGE digital shelf technology and evolving to advanced AI-powered self-checkout systems, dynamic pricing, and marketplace enhancements by 2025.

Lowes

Lowe's has progressively integrated AI technologies from 2022 through 2025, evolving from pioneering digital twins to launching AI-powered virtual assistants like Mylow, significantly enhancing customer experience and operational efficiency.

Best Buy

Best Buy has aggressively integrated generative AI into its customer support and service operations since Q2 2024, partnering with Google Cloud and Accenture to launch AI assistants that handle inquiries across multiple channels, resulting in improved customer experience and operational cost reductions including layoffs.

Walmart

Walmart has progressively expanded its AI adoption from improving inventory management and customer experience in 2023 to deploying advanced generative AI and agentic AI solutions by mid-2025, impacting supplier negotiations, personalized shopping, and frontline employee empowerment.