Target operates nearly 2,000 stores across the United States, serving roughly 100 million customers every week. The company is valued at 50.6 billion USD and employs roughly 440,000 people worldwide.
At the enterprise scale, every percentage point of efficiency matters. A 1% improvement in inventory accuracy affects millions of transactions. A few seconds saved per checkout adds up across thousands of annual visits.
In today’s AI at the Top, we will explore:
How Target uses AI across different business personas (employees, customers, vendors) and domains (CX, operations, etc.)
Internal tools built on top of proprietary data
Partnerships to win the AI game
How Target’s Employees use AI internally
Target’s approach to AI starts with a clear philosophy from its former CIO, Brett Craig: “AI amplifies talent.”
Aligning with this philosophy, Target has built multiple internal tools on top of decades of proprietary data:
Store Companion is Target’s GenAI-powered chatbot rolled out to nearly 2,000 stores by August 2024.
The tool lives on employees’ handheld devices. Team members can ask questions like “How do I sign a guest up for a Target Circle Card?” or “How do I restart the cash register in the event of a power outage?” Store Companion provides instant answers and coaching.
Target developed the tool in just six months using real FAQs and process documents from stores across the U.S. The company piloted it at 400 stores first, gathering feedback before the chainwide rollout.
“Generative AI is game-changing technology and Store Companion will make daily tasks easier and enable our team to respond to guests' requests with confidence and efficiency.”
At Target’s headquarters, ChatGPT Enterprise has been rolled out to 18,000 employees. Teams use it to increase speed, simplify workflows, and create more space for creativity.
Target also developed Target Trend Brain, a GenAI tool that predicts and reacts to future trends, identified from multiple touchpoints.
How Target is Personalising the Shopping Experience for its Customers
Target launched the Bullseye Gift Finder in December 2024 as a GenAI tool to provide personalised product recommendations. Parents can enter the child’s details like age, hobbies, favourite brands, and receive curated gift suggestions in seconds.
The tool features thousands of gift ideas across toys, tech, and accessories. It’s available on the web, mobile, and app.
Shopping Assistant is available on select product pages. Customers can ask questions like “Will this shirt shrink in the wash?” or “Does this product contain artificial fragrance or dye?” The assistant provides real-time answers.
Target also introduced Guided Search, which allows customers to use natural language. Instead of searching for “napkins,” a customer can search for “summer party” and receive relevant items like party supplies, outdoor tableware, grilling meat, snacks, and commonly forgotten items like bug spray.
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AI in Operations
The company created an internal tool called Inventory Ledger to track inventory changes across activities like sales, replenishment, and order fulfilment.
When Target performed physical audits, they discovered that half of the out-of-stocks were unknown to their systems. Machine learning now helps Target identify these discrepancies and predict when items will run low. During the holiday season, AI spots when products are running low earlier than before, helping store leaders take real-time action hour by hour.
The company also uses AI for demand forecasting and inventory planning. AI analyses past sales patterns, seasonal trends, and real-time data to accurately predict product demand and ensure the right products are in the right locations.
These operational improvements happen quietly behind the scenes, ensuring customers almost always find what they need on the shelf when they need it.
AI to Unlock Higher Value for Vendors and Partners on Target’s Retail Media Network
Roundel is Target’s retail media network, generating nearly $2 billion in value for the company. Target expects to double that value to $4 billion over the next five years.
The network connects brands to more than 165 million omnichannel guests. It works with over 2,000 vendors, including Apple and Mars Wrigley, and delivers ads across Target.com, the Target app, and 150+ premium publishers such as Pinterest, The New York Times, and NBC Universal.
In 2025, Target introduced Precision Plus by Roundel, an AI performance engine that helps advertisers optimise off-site campaigns. The tool uses Target’s first-party data and real-time shopping behaviour to align campaigns with specific conversion goals.
Precision Plus integrates with platforms like Google, Meta, Pinterest, and The Trade Desk. AI adjusts ad placements during live campaigns to improve performance, and enhanced measurement shows what’s working in real time.
More than 30% of Roundel’s partner media spend now happens off Target’s owned platforms. Target reported $163 million in advertising revenue in Q1 2025, up 25.4% YOY.
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Internal Tools and Technologies Used by Target to Win the AI Game
Key Partnerships
Target’s AI transformation relies on strategic partnerships rather than building everything in-house.
What’s Next for Target?
It is evident that the enterprise wants to be present where most customers spend time in future: talking to agents and Gen AI interfaces.
Partnerships with OpenAI (ChatGPT) and Google (Gemini) are the first steps towards the agentic shopping experience.
In November 2025, Target partnered with OpenAI to launch a shopping experience inside ChatGPT. Customers can tag Target and ask for ideas:
“We're proud to be one of the first retailers bringing shopping into this new channel. Our goal is simple: make every interaction feel as natural, helpful, and inspiring as chatting with a friend.”
The future of retail might get more exciting than we expect.
Sources:
Case studies and releases by OpenAI, Digital Defynd, Digital Commerce, RetailDive
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