Target Corporation TGT is increasingly leaning into artificial intelligence (AI) technologies to personalize the digital shopping experience and deepen engagement with its core consumer base. As part of its broader push to accelerate tech capabilities, the retailer is utilizing AI-powered tools designed to streamline discovery and deliver highly customized content to digital shoppers.
Target has also joined with OpenAI, Google Gemini and other leading platforms to participate in the early development of agentic commerce. Although traffic from external AI platforms remains a small part of the business, management said this traffic is expanding at more than 3.5 times the industry pace compared with a year earlier.
The personalization push is also becoming visible within Target’s own digital ecosystem. During the back-to-school and back-to-college season, the company introduced AI-powered teacher and college wish lists, along with more personalized content on the Target app’s home screen. This tailored approach resonated strongly with consumers. Total wish-list creations increased more than 50% year over year, the number of items added to those lists more than doubled, and conversion across key back-to-school pages rose nearly 20%.
These trends show how Target is using AI not simply as a back-end efficiency tool, but as a way to improve discovery and engagement in digital shopping. By pairing personalized app experiences with AI-enabled shopping tools and external AI-platform partnerships, Target is broadening how guests can find, organize and purchase products across its digital channels.
How Target Compares With Walmart and BJ’s Wholesale
Walmart Inc. WMT is using AI to make digital shopping more personalized and convenient. Walmart said usage of its AI-powered Sparky assistant increased 70% year over year, while customers using Sparky spend 40% more per order. Walmart also highlighted Sparky’s ability to build meal plans, recommend products and recognize prior purchases across stores and online, helping shoppers avoid duplicate purchases and simplifying product discovery.
BJ’s Wholesale Club Holdings, Inc. BJ is also deepening digital engagement through AI-enabled shopping support. BJ’s Wholesale said its AI-powered assistant, Bev, has handled more than 100,000 member conversations, helping shoppers find products, check club hours and better use their memberships. BJ’s Wholesale is pairing this capability with broader digital convenience, as digitally enabled comparable sales rose 30% in the second quarter of fiscal 2026 and digitally engaged members demonstrated stronger spending and loyalty.
