CEO Michael Fiddelke said the retailer's core consumer base is "digitally fluent." As a result, Target is trying to be among the first retailers on platforms where its customers shop, including ChatGPT. Target has both launched an app on ChatGPT and has begun an early pilot with OpenAI to explore AI as a new retail media channel.
Target's chief merchandising officer, Cara Sylvester, said AI-driven personalization through its loyalty program "generates billions of dollars in incremental sales."
So, to continue growing its profitable digital channels, Target plans to lean further into AI. The retailer wants agents and other AI tools to help consumers find exactly what they're looking for — and items they didn't know they wanted — as quickly and smoothly as possible.
