Target's Generative AI Expands Beyond Holidays, Shaping Future of Shopping
Target, the retail giant, has been making waves with its generative AI technology. Last holiday season, it introduced the Bullseye Gift Finder, a tool that uses AI to suggest gifts. The company is now looking to expand this technology for other special occasions like Valentine's Day and Mother's Day.
Target's generative AI is not just about suggesting gifts. The company is preparing for a future where customer queries are handled directly by AI agents. This shift is driven by changing customer behavior, with shoppers increasingly using longer, context-based queries. Target's vice president of digital product management, Ranjeet Bhosale, sees this as the future of SEO, dubbing it 'generative engine optimization'.
However, consumer skepticism about AI shopping assistants is a barrier. Target has found that guests are willing to use generative AI if it provides relevant and contextual results. The company is focusing on this aspect to meet changing customer search behaviors.
Target's Bullseye Gift Finder, introduced during the last holiday season, is set to become a year-round tool. The company is scaling its generative AI capabilities for other seasonal moments, adapting the AI system to suggest relevant gifts tailored to specific occasions. As customer queries evolve, Target is preparing for a future where AI agents handle customer interactions, with a focus on providing relevant results within context.
