How US Retail Giants Are Leveraging AI for Growth in 2026: A Comprehensive Review

[Ebrun Original] Walmart, Target, Best Buy, Home Depot, Lowe's... This year, leading US retailers seem to have unanimously made a strategic move: elevating AI from a department-level technology tool to a corporate strategic priority. Some have appointed Chief AI Officers (CAIO), while others have declared a transformation into "AI-native enterprises." From launching consumer-facing AI shopping assistants to deploying AI-powered operational tools for employees; from using AI to enhance internal efficiency to channeling external AI traffic—each company is taking intensive action. These enterprises have already accumulated scale and supply chain advantages in traditional retail scenarios. However, as AI begins to reshape how consumers discover and purchase products, purchasing decisions scattered across various touchpoints may be consolidated at new entry points. The barriers previously built through store networks, shelf space, and membership systems now require revaluation. Simultaneously, their large scale and heavy store and fulfillment assets dictate that their AI strategies cannot simply start from scratch like lighter-weight players. Instead, AI must be embedded into existing store operations, consumer experiences, and employee workflows. So, how exactly can AI drive new growth? Ebrun has analyzed the AI strategy advancements of eight prominent US retailers this year, examining their strategic deployments, implementation scenarios, and returns on investment to see what answers they have delivered.

01 Leadership Changes, New Roles, and Long-Term Bets: Strategic Deployment by US Retail Giants

Appointing new AI management positions has been a common practice among multiple US retailers this year. In April, The Home Depot appointed a new Chief Technology Officer (CTO) with extensive AI background to spearhead the company-wide implementation of agentic AI and machine learning. In August, Target added a senior leader for its AI strategy, creating the new Chief AI Officer (CAIO) position to unlock business potential across all business lines using AI. Lowe's also elevated AI as a key corporate development focus during its executive reshuffle in September, with the Chief Information Officer's responsibilities expanding to include AI-related duties. Walmart CEO John Furner stated that the company is becoming an "AI-native enterprise." During the Q1 FY2026 earnings call, agentic AI was prominently mentioned, with Furner noting that leveraging Walmart's supply chain achievements and investing in AI-driven data capabilities would enable faster decision-making and superior fulfillment. Best Buy is another leading US retailer actively deploying agentic AI. CEO Corie Barry emphasized expanding agentic AI applications across the business, stressing that Best Buy's AI initiatives aim to optimize customer experiences and provide employees with tool support to enhance overall operational efficiency. Agentic AI has also been defined as a long-term strategic focus for Best Buy, not a short-term project.

02 From Personalized Add-to-Cart to Autonomous Service: Diverse AI Implementation Approaches

When it comes to AI applications, each retail enterprise has its own strategies. Overall, AI is transforming how consumers discover, evaluate, and purchase products, as well as reshaping internal work processes. I. AI-Powered "Personalized" Shopping Experiences Target launched AI-powered review insights and image search tools in June and August, respectively. The former identifies frequently discussed product tags and categorizes user feedback by theme, helping consumers quickly focus on information critical to their purchase decisions. Additionally, Target is leveraging its Buy Again tool to drive repeat purchases, showcasing promotions matched with frequently purchased products based on historical shopping behavior to retain loyal customers. The Continue Shopping feature targets users with incomplete purchase journeys, using personalized algorithms to recommend recently viewed products and alternative promotions on users' homepages. Target's Shipt has also introduced its proprietary AI shopping assistant, Ask Shipt, which allows users to input shopping needs via text or images, and the AI automatically matches products and generates shopping lists. Wayfair, the US online home goods retailer, had already tested AI search and product discovery through its Decorify app in previous years. In February, the app was upgraded and rebranded as Muse. Based on current features, Muse not only directly adjusts product links but also helps users generate home renovation renderings, assisting consumers in creating their ideal living spaces. In September, the fresh grocery instant delivery platform Yimai (FreshGoGo) launched its AI shopping assistant Clementine, which combines consumer dietary preferences, shopping budgets, and historical shopping behavior with real-time shelf inventory data to complete personalized grocery purchases. To achieve real-time personalized recommendations, the assistant leverages the platform's 1.6 billion cumulative orders and a product database of 2 billion items. It also receives over 10 million daily inventory signals from more than 100,000 physical stores operated by 2,200 retail operators across North America. Walmart's shopping agent Sparky offers personalized replenishment and meal planning features, integrating inventory layout, product pricing, and delivery timelines to deliver smarter product recommendations. As features have evolved, users have transitioned from initially using Sparky to discover products to now using it for purchasing everyday essentials. Home Depot's generative AI tool, "Magic Apron," helps consumers resolve DIY home improvement project queries and now handles millions of user questions monthly. B2B customers can also use the Material List Builder to quickly create lists and scale up procurement. II. AI for Operational Cost Reduction and Efficiency Gains Consumers are just one of the groups retail enterprises serve with AI. Behind the scenes, these companies have developed AI tools that also benefit their internal staff. Lowe's has an independent AI development platform, AI Foundry, for AI software development and internal testing. The existing Mylow assistant enhances user interaction and integrates with employee interfaces to assist in-store associates serving customers. The Materials Lists tool, already launched, quickly reads file information and imports it into project planning, simplifying quoting processes. Wayfair's high-end home furnishing sub-brand Perigold uses its proprietary AI workflow to generate product images, reducing costs by over 99% compared to traditional photo shoots. Beyond product images, all product copy across the platform is being optimized with AI to better match customer needs. Yimai has also developed another AI tool for fresh food retailers, Cart Assistant, allowing retailers to integrate their product catalogs and user data to generate AI assistants branded with their own logos. Retailers can customize the assistant's name, conversational tone, and more. Chewy's AI shopping assistant Cai automates return and refund processing. Multiple built-in AI agents triage customer inquiries that would otherwise go to human agents, resolving approximately 30% of conversation issues and converting user requests into actionable insights. Chewy has also developed tools for pet healthcare clinics to handle appointment confirmations and scheduling. Best Buy internally tested intelligent search functionality in 2025 before deploying AI applications in customer service centers, internal systems, and inventory management. Currently, customer service satisfaction and inventory management have improved, while contact costs and fulfillment costs have decreased simultaneously. Walmart's AI is also being integrated into its advertising business, now enabling advertisers to dynamically adjust content combinations to optimize ad performance. III. Attracting External AI Traffic Embedding AI into proprietary platforms or internal systems focuses on optimizing operations for existing users and encouraging retention. However, collaborations with external AI platforms aim to secure additional traffic channels from a customer acquisition perspective. Target has partnered with OpenAI, Google Gemini, and others to explore agentic commerce models, with shopping now possible through ChatGPT and Claude. Yimai has adopted similar partnerships, allowing users to initiate fresh grocery shopping conversations on Claude, ChatGPT, Gemini, or Google Search AI Mode and seamlessly transition to Yimai. According to recent reports, Best Buy has also started collaborating with ChatGPT in preparation for the upcoming holiday shopping season, allowing consumers to generate gift ideas through AI conversations and complete orders directly within the AI dialogue. Making AI platforms an external traffic entry point is already showing growth potential. Target disclosed that while overall traffic from external AI platforms remains relatively small, year-over-year growth is 3.5 times higher than the industry average.

03 Cost Reduction and Customer Retention: AI Investments Yield Initial Results

What solidifies retail enterprises' commitment to AI investment are the returns already observed from the aforementioned AI operational methods, including user growth, cost reduction, and quantifiable financial benefits. Target's AI review insights have improved conversion and add-to-cart rates while reducing "decision fatigue" for users. Both Buy Again and Continue Shopping, launched last year, have driven double-digit conversion growth year-over-year. Specifically, Buy Again has spurred demand in categories like food and beverages, while Continue Shopping has generated additional add-on orders. AI-driven wish list creation has grown over 50% year-over-year, with new item additions doubling and back-to-school shopping conversion rates rising nearly 20%. Chewy's Chief Financial Officer noted that over half of the company's sales order flows are processed by AI automation systems. Beyond efficiency gains, the launch of AI shopping assistants is attracting younger demographics. In FY2026, AI-related projects are expected to save the company tens of millions in costs. At Lowe's, online customers using the AI shopping assistant convert at three times the rate of non-users, with over 25 million queries handled cumulatively, demonstrating that superior AI experiences significantly drive purchase decisions. Yimai users who order through the AI shopping assistant make higher-value purchases than average users, with average order values consistently above $115. As Walmart's AI assistant improves in intelligence and response quality, its practical value grows. In the last quarter, the weekly active users of Sparky increased by over 100%, and the average order value was 35% higher than that of non-users, with the quantity of items purchased via Sparky growing more than fourfold quarter-over-quarter. Home Depot's Magic Apron enjoys high user engagement, handling millions of queries monthly and continuously driving online conversion improvements. Wayfair's B2B online business exceeded expectations and saw revenue growth in the second fiscal quarter, with AI implementation playing a crucial role. The company's CEO believes that complex, detail-oriented tasks like product catalogs are precisely where AI can create outsized value, and future AI investments will only increase.

This article was originally published on Ebrun's official website.