Target launches generative AI gift finder

Target on Friday (December 6) debuted its Bullseye Gift Finder, a generative AI-driven product recommendation tool.

As customers use the tool on the retailer’s mobile app and website, personalized product recommendations for kids are given based on factors such as age, hobbies, favorite brands and other criteria, per a company press release. Target launched the tool with a focus on toys and is adding thousands of gift ideas for kids throughout the holiday season.

The retailer also is experimenting with its new generative AI-powered Shopping Assistant, a chatbot that answers questions and gives product recommendations.

Target is delving further into artificial intelligence. In June, the company debuted its generative AI tool for store staffers, which assists them with answering questions and understanding company procedures.

So far, its investments appear to have paid off. Target COO Michael Fiddelke said this summer that the company will continue to refine its store associate tool, and employees have said that it has “enhanced their everyday work experience, making it easier and faster to help our guests.”

Beyond its latest AI tools, the company said it will test more generative AI applications this year and in the near future to improve the shopping experience for customers, per the press release.

“We’re also using GenAI technology to make your digital shopping easier in other ways — including hundreds of thousands of enhancements to our product display pages on Target.com for easier searching, conveniently summarized product reviews and more,” the company said in a statement.

As Target is harnessing generative AI to enhance its operations, the retailer recently missed its Q3 earnings expectations. The company’s third-quarter sales dipped 1% year over year to $25.2 billion, and net earnings declined over 12% to $854 million. Overall comparable sales were flat, with comparable store sales declining nearly 2%. The retailer lowered its guidance and now expects flat comps for Q4.

Retail Dive