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Target is going all in on generative AI.
Last month, the retailer unveiled plans to equip employees at its almost 2,000 stores across the country with Store Companion, a chatbot driven by GenAI. Based on large language models, the internally developed tool, which gives frontline workers real-time access to information and expertise via handheld devices, is designed to raise service levels and elevate customer engagement. Now being tested at some 400 locations, Store Companion is expected to be in use chainwide by August.
Mark Schindele, executive vice president and chief stores officer, characterizes the direct application of GenAI to the shopping experience as a game changer: “The tool frees up time and attention for our team to serve guests with care and to create a shopping destination that invites discovery, ease and moments of everyday joy.”
Store Companion is just one aspect of Target’s push to utilize GenAI and other advanced technology to respond to customers’ needs more efficiently and effectively, according to Brett Craig, executive vice president and chief information officer. According to Craig, GenAI is speeding up the pace of innovation at the company. Target promises to provide further evidence of that phenomenon later this year when it launches a new unspecified tool, initially for headquarters personnel. GenAI is already allowing the retailer to hone the digital shopping experience by improving product display pages and adding guided search capabilities that rely on everyday language.
Target — like other major retailers, including Amazon and Walmart — is intent on harnessing the power of generative AI to take its business to the next level. The potential benefits are enormous, but, as a new report from Coresight Research makes clear, so are the pitfalls. Titled “AI Models: Risky Business — Navigating the Challenges of Using AI,” the study concludes that for companies that get in on the ground floor and carefully define use cases, GenAI will be a competitive differentiator. They must, however, be cognizant of the considerable challenges related to the rapidly evolving technology.
Warning that AI cannot simply be put in place and left to function without ongoing supervision, the report examines problems that can result from such factors as training bias, model drift and hallucination. Faulty output from AI can damage a company’s reputation and expose it to litigation. Target and its rivals understand the trade-offs, but are confident that, with responsible stewardship, Gen AI will be a boon — to themselves, business partners and customers.
