Target is placing a strategic bet on a new artificial intelligence tool to enhance employee productivity and elevate the shopping experience.
This move is significant as the Minneapolis-based retailer joins others in leveraging AI to boost efficiency amidst escalating labor costs and lackluster sales.
Target announced on Thursday the introduction of its "Store Companion chatbot" as an application for employees across its nearly 2,000 stores. Accessible via store-owned handheld devices, this tool aims to provide quick answers to queries about operational procedures.
Currently undergoing a pilot phase in approximately 400 stores, Target plans a full-scale rollout following initial testing. The company developed the chatbot internally, reflecting a broader trend among major retailers like Amazon, Walmart, and Best Buy who are integrating AI technologies to streamline operations.
Target's AI initiative extends beyond internal operations; they are also utilizing AI to personalize customer shopping experiences online and in-store, announced last December.
Chief Information Officer Brett Craig describes the chatbot as capable of handling inquiries ranging from Target Circle loyalty cards to product locations within stores, all in a user-friendly, conversational style.
According to Craig, the objective is to empower employees in delivering enhanced customer service rather than replacing them outright, emphasizing Target's commitment to improving operational efficiency and customer satisfaction.
In essence, Target's adoption of AI underscores its efforts to harness technological advancements for operational enhancement and customer service improvement.