Retail giant Target Corporation is set to introduce a new generative artificial intelligence tool, named Store Companion, across its nearly 2,000 U.S. stores. This AI chatbot will assist hundreds of thousands of staff members, providing them with immediate answers to work-related questions and aiding in various store operations. According to a June 20 statement from Target, the rollout is scheduled to be completed by August.

Store Companion is designed to simplify the tasks of Target employees and enhance the overall shopping experience. Available as an app on the handheld devices used by staff members, it will offer instant responses to queries about processes and procedures. For instance, employees might ask how to sign a guest up for a Target Circle Card or how to restart the cash register in the event of a power outage.

Mark Schindele, Target's executive vice president and chief stores officer, highlighted the potential of generative AI as a transformative technology. He noted that Store Companion would streamline work tasks, allowing employees more time to focus on customer service and creating a welcoming shopping environment. With over 400,000 employees in the United States, as reported by Macrotrends, this tool promises to significantly impact daily operations.

"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," Schindele stated.

Developed by Target's in-house technology team, Store Companion is currently being piloted in about 400 stores nationwide. These pilot stores are providing feedback to refine the tool before its nationwide deployment. This phase ensures the chatbot will be optimized for efficiency and effectiveness upon full implementation.

In addition to assisting employees, Target is leveraging generative AI to enhance the shopping experience for customers. The company is using AI to summarize product reviews and improve the relevance of product descriptions on its website, helping shoppers make informed purchase decisions. Target is also exploring dozens of other potential applications of generative AI, which may be introduced in the future.

Despite the announcement, there was no significant impact on Target’s stock price. On the day of the announcement, Target's shares (TGT) saw a slight increase of 0.59%, reaching $143.38, according to Google Finance data.

In summary, Target's introduction of the Store Companion AI chatbot is a strategic move to streamline store operations and enhance customer service. By integrating advanced AI technology into its daily operations, Target aims to support its staff, improve efficiency, and provide a better shopping experience for its customers. As the company continues to innovate with generative AI, it remains at the forefront of utilizing technology to drive retail excellence.