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 adopted AI technologies since 2019, evolving from experimentation in supply chain and inventory management to sophisticated AI-driven operations including employee scheduling, personalized shopping, and global market expansion by 2025.
Home Depot has progressively integrated AI technologies from 2021 through 2025, evolving from backend store operations management led by Michael Carpenter to advanced generative AI customer-facing tools like Magic Apron, driving online sales and improving customer experience.
Target has progressively expanded its AI integration from inventory and supply demand forecasting in Q4 2023 to deploying a generative AI employee chatbot 'Store Companion' by mid-2024, significantly increasing in-store operational efficiency by Q3 2024.
CVS Health has progressively increased its adoption of AI and machine learning from 2021 through 2025, notably leveraging data analytics and ML personalization (e.g., improving prescription refill rates and medication adherence). Key figures include a $2 billion AI-driven cost savings initiative announced in late 2024 and an expected 2023 revenue of $355 billion.
Walgreens has progressively integrated AI across healthcare services, retail operations, and supply chain from 2019 to 2025, partnering with major tech players like Microsoft and Palantir and deploying solutions such as conversational AI for vaccine scheduling, AI-driven demand planning, and robotic micro-fulfillment centers.
Kroger has progressively integrated AI technologies since 2019, starting with the EDGE digital shelf system and advancing to sophisticated AI-powered self-checkout solutions, generative AI for marketing and marketplace enhancements, and dynamic pricing systems.
Lowe's has steadily increased its artificial intelligence adoption since 2022, evolving from pioneering digital twins and AR tools for associates to launching a generative AI-powered virtual home improvement assistant 'Mylow' in 2025, significantly enhancing customer engagement and operational efficiency.
Best Buy has progressively integrated AI technologies from early 2024, initially focusing on generative AI in customer support, evolving to agentic AI by mid-2025 to enhance operational efficiency and customer experience across digital and physical channels.
Walmart has progressively integrated AI from improving inventory and customer experience in 2023 to deploying generative, agentic, and foundation models by 2025, achieving significant operational efficiencies and enhanced personalization.
51 Use Cases in Retail
| Company | Use Case |
|---|---|
| Home Depot | Store Operations Home Depot integrates AI agents with human expertise to streamline in-store operations, empower store associates, and improve customer satisfaction at scale through autonomous and assistive AI solutions. agentic |
| Costco | Retail Media Targeting Using AI-powered tools, Costco's retail media network segments audiences more effectively to optimize advertising and promotions. traditional |
| Walmart | Customer Support Conversational AI agents handle over 3 million weekly queries, cutting resolution times by up to 40% and improving customer satisfaction and operational efficiency. agentic |
| Target | Digital Marketing Optimization Target applies AI to optimize ad placements across platforms like Google, Meta, and Pinterest to prioritize and adjust ads dynamically, enhancing advertising effectiveness. traditional |
| CVS Health | Care Management CVS’s Aetna launched AI-enhanced Care Paths to connect members with chronic conditions like diabetes to tailored care programs, improving health outcomes. traditional |
| Walmart | Supply Chain Automation Real-time AI and automation are applied to optimize Walmart’s global supply chain operations, improving stock accuracy, speed, and delivery capabilities. agentic |
| Best Buy | Product Discovery Best Buy plans to implement AI-powered search with conversational filtering and prompts to help customers find products more efficiently online, resulting in a better shopping experience and increased customer confidence. agentic |
| Walgreens | Supply Chain Optimization Walgreens partnered with Palantir to deploy digital twins that unify fragmented data sources, providing real-time visibility and enhancing supply chain responsiveness. agentic |
| CVS Health | Resource Forecasting CVS leverages AI-driven forecasting tools to optimize COVID-19 testing and vaccination resource allocation, staffing, and supply chain logistics across thousands of locations. traditional |
| CVS Health | Personalized Engagement CVS uses machine learning models to analyze patient behavior and personalize communication such as text messages and calls to increase prescription refill rates and medication adherence. traditional |