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 since late 2023, focusing on operational efficiency, inventory optimization, and customer experience enhancements.
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.
Target has progressively integrated AI from inventory management and personalized shopping experiences in Q4 2023, advancing to generative AI tools like the 'Store Companion' chatbot for employees by Q2 2024, facilitating improved operational efficiency and customer experience.
CVS Health has progressively expanded its adoption of AI and machine learning from 2021 through mid-2025, leveraging these technologies to enhance personalized healthcare, improve operational efficiency, and transform customer experience across its Pharmacy, Caremark, and Aetna divisions.
Walgreens Boots Alliance has steadily integrated AI technologies since 2019, starting with a strategic partnership with Microsoft to enable personalized healthcare insights and expanding through various operational and customer engagement enhancements.
Kroger has progressively integrated AI technologies from 2019 through 2025, starting with in-store innovations like the EDGE system and advancing to AI-powered self-checkout, dynamic pricing, marketplace listing optimization, and inventory management.
Lowe's has progressively integrated AI technologies since Q3 2022, starting with a pioneering digital twin system to support associates, evolving into advanced generative AI capabilities such as the Mylow virtual home improvement assistant launched in Q1 2025, and continuing with broad deployment of AI tools to enhance customer experience and associate productivity by Q3 2025.
Best Buy has progressively integrated AI-driven solutions starting in early 2024, focusing on customer support enhancements through generative AI virtual assistants, launched in partnership with Google and Accenture, improving troubleshooting, order management, and direct customer interaction.
Walmart has significantly expanded its AI adoption from 2023 through 2025, moving from foundational applications in inventory management and customer experience improvements to advanced generative and agentic AI deployments impacting supply chain, product development, and workforce management.
50 Use Cases in Retail
| Company | Use Case |
|---|---|
| Home Depot | Employee Enablement Home Depot combines AI agents with human expertise to streamline store operations, empower associates with AI-driven insights and tools, and boost productivity. agentic |
| Costco | Retail Media Costco uses AI-powered platforms to segment audiences and build retail media networks, enhancing targeted advertising capabilities and revenue opportunities. traditional |
| Walmart | Conversational Support Walmart deploys conversational AI agents like 'Sparky' to assist customers with product reviews, ordering help, and personalized recommendations, handling millions of queries weekly. agentic |
| Target | Digital Marketing Target applies AI to optimize ad placements across platforms such as Google, Meta, and Pinterest in its Roundel retail media network, enhancing targeting efficiency and ROI. traditional |
| Walmart | Supply Chain Optimization Real-time AI and automation systems overhaul Walmart’s global supply chain to improve stock accuracy, order fulfillment, and delivery speeds aiming to cover 95% of U.S. households with 3-hour delivery. agentic |
| CVS Health | Care Management CVS uses AI to assist care managers in improving patient interactions and care transitions, reducing administrative workflows (e.g., nurse call preparation, summary writing) and enabling better behavioral health interventions. traditional |
| Walmart | Task Management AI-driven task management tools automate employee scheduling and shift planning, reducing time spent from 90 minutes to 30 minutes, freeing managers to focus on other priorities. agentic |
| Best Buy | Product Discovery Best Buy is developing AI-powered search enhancements on its website and app to guide customers through natural conversational prompts and filtering, making product searches more relevant and easier, aimed at improving the online shopping experience. traditional |
| Kroger | Inventory Management Kroger applies AI models to inventory and shrink management processes to forecast demand accurately, reduce stock losses, and improve operational efficiency within stores. traditional |
| Walgreens | Supply Chain AI-powered digital twins created by Palantir unify fragmented data sources to provide Walgreens with real-time visibility and enhanced supply chain operations. agentic |