Key Facts
- ✓ 78% of US adults said AI was involved in their holiday shopping, according to a November survey.
- ✓ Walmart introduced its AI shopping assistant, Sparky, in June.
- ✓ Amazon's AI assistant Rufus has over 250 million customers this year.
- ✓ Sephora launched the Smart Skin Scan in March for skincare analysis.
Quick Summary
Major retailers are rapidly integrating artificial intelligence into the shopping experience, partnering with companies like OpenAI and developing proprietary tools. Retail giants such as Walmart, Target, Amazon, and Sephora have launched AI assistants to handle product recommendations, checkout processes, and customer service inquiries.
Consumer adoption is significant, with a November survey indicating that 78% of US adults used AI during holiday shopping, including 89% of Gen Z and 60% of Baby Boomers. Specific implementations include Walmart's 'Sparky' assistant, Target's ChatGPT integration, Amazon's growing 'Rufus' tool, and Sephora's Smart Skin Scan for skincare analysis.
The retail sector has become a primary battleground in the broader AI arms race, with companies investing heavily to simplify the consumer journey.
Consumer Adoption and Industry Trends
Retail is becoming a significant battleground in the artificial intelligence arms race. Since the introduction of ChatGPT in 2022, AI chatbots have seen a meteoric rise in popularity. This year, major retailers unveiled plans to offer AI tools designed to make shopping easier for consumers.
Investments are flowing into partnering with AI companies or building large language models to create shopping assistants and simplify the checkout process. Shoppers are already widely using these technologies.
According to a November survey of about 1,000 US adults published by customer service support company Liveops:
- 78% of adults said AI was involved in their holiday shopping
- 89% of Gen Z used AI during holiday shopping
- 60% of Baby Boomer respondents used AI services
In an October survey from PwC, more than half of respondents planned to use AI for price checks, trip planning, or writing messages. Retailers are not the only ones building these experiences; OpenAI is integrating e-commerce into ChatGPT with an Instant Checkout feature, allowing users to purchase items from select retail partners directly within chats.
"This is a stepping stone toward the way some people will eventually shop."
— Brad Thompson, Senior Vice President of Technology at Target
Major Retail Implementations
Several prominent retailers have publicly detailed their strategies for using AI to transform shopping.
Walmart and Target
Walmart introduced its AI shopping assistant, Sparky, in June. Shoppers use the chatbot in the Walmart app to find products, read reviews, and receive personalized recommendations. Additional features rolled out for the holiday season include help with party planning, a 3D showroom, and audio product descriptions. In October, Walmart announced a partnership with OpenAI, enabling customers to shop through ChatGPT using the Instant Checkout feature.
Target launched a custom app in ChatGPT in November. This feature allows shoppers to purchase multiple items in a single transaction, shop for fresh food, and select shipping methods. Target's app also includes AI-powered tools that scan written grocery lists to automatically add items to the cart and a holiday-themed assistant for gift ideas.
Amazon and eBay
Amazon's AI assistant, Rufus, has grown to over 250 million customers this year, with monthly users up 140% year-over-year. Rufus offers personalized product recommendations and appears alongside search results to help users find deals.
eBay unveiled an AI-powered shopping agent in May to personalize the shopping journey. The company built its large language models in-house to perform specific shopping tasks and plans to integrate these capabilities into the main search experience over the coming quarters.
Specialized Tools and Future Outlook
Retailers are also deploying AI for specific customer bases and specialized tasks.
Home Improvement and Beauty
Home Depot created an AI tool called Blueprint Takeoffs for professional builders and renovators. The tool handles material lists and estimates, reducing tasks that take weeks to just a few days. Lowe's introduced Mylow, an AI virtual assistant made in collaboration with OpenAI, which provides step-by-step instructions for DIY projects and answers nearly 1 million questions a month.
Sephora is utilizing AI for beauty recommendations. In March, the retailer introduced the Smart Skin Scan, allowing consumers to scan their face for a four-step skincare routine. Sephora also launched a generative AI chatbot, Sephora AI Beauty Chat, to provide personalized shopping experiences and gift recommendations.
Apparel and General Commerce
Abercrombie & Fitch is investing in AI to enhance the customer journey, using AI agents in customer service and partnering with PayPal to enable transactions within AI conversations on platforms like Perplexity.
Conclusion
The integration of artificial intelligence into retail is no longer a future concept but a current reality. From Walmart's Sparky to Sephora's skin analysis tools, retailers are leveraging technology to offer highly personalized and efficient shopping experiences. As consumer adoption spans all age groups, the focus for 2026 and beyond will likely remain on refining these tools to save customers time and money while providing expert-level insights.
"Our goal is to save customers time and money by making online shopping even simpler with real-time information and insights of experts."
— Rajiv Mehta, Vice President of Search and Conversational Shopping at Amazon
"Our AI shopping agent has given buyers a new way to shop across our inventory, with personalized product picks and expert guidance based on their individual shopping preferences."
— Jamie Iannone, CEO of eBay
"The speed and accuracy of the Blueprint Takeoffs tool give Pros more time to focus on what matters most: serving their customers and growing their businesses."
— Mike Rowe, Executive Vice President of Home Depot's Pro Business
