Brands across the country are piloting new AI systems. Yes, they’re using checkout-free setups & smart shelf labels, as well as screens that know what you’re looking at and carts that track your choices.
What are they testing? How are these experiments affecting the brands and you? That’s what we’re going to find out.
Walmart’s AI in stores and apps
Walmart has given around 1.5 million American staff members an AI-powered associate app to use. The app deals with issues like task guidance & translation in 44 languages. It also has a conversational help bot.
But that’s not all. The chain is also testing AR (augmented reality) and RFID (Radio-Frequency Identification) to keep stock fresh & findable.
Shopping straight from ChatGPT
Just what could Walmart do with ChatGPT? It turns out, a whole lot. The retailer teamed with OpenAI so that customers & Sam’s Club members could directly buy products inside ChatGPT.
Simply ask, and the bot finds the item. It’ll add it to the cart & check out for you. It’s useful for the brand in quite a few ways.
AI exit gates and in-store retail media measurement
Speaking of Sam’s Club, they’ve launched AI-driven exit gates that match carts to receipts. These gates are present at over 120 stores, instead of manual receipt checkers. Apparently, the gates have reduced exit times by around 20-23%, so it’s clearly had a positive impact.
Target’s shelf algorithms and trend engine
Target has also been working on an AI. Their AI system watches stock on the shelves in real-time, while their “Trend Brain” system focuses on global buying & merchandising trends.
They’ve also changed their search features so that you’re able to use natural-language prompts like “eco-friendly” or “sturdy.” It’ll get you the right results.
Instacart’s “AI Solutions” with Kroger & Sprouts
Instacart has also launched enterprise AI tools for groceries, including the white-label shopping agent Cart Assistant. Store View monitors shelves through computers, while Catalog Engine focuses on data points like nutrition & allergens.
They’re working with Kroger & Sprouts as launch partners.
AI in-aisle assistance
You may not think that a store like Lowe’s would be all that interested in AI. But it is. They launched “Mylowe Companion,” a generative-AI tool that helps staff members.
It allows them to answer any questions that customers might have. How exactly? By using live inventory & product information.
Wendy’s rolls out FreshAI at the drive-thru
Wendy’s is one of many franchises changing their approach to drive-thrus. The fast-food giant launched its FreshAI systems in 500 restaurants, a system that allows customers to order with their voice.
It currently supports English & Spanish. Such a system frees up the staff to focus on food & service, rather than taking orders.
Taco Bell tests voice AI at scale with Nvidia partnership
Taco Bell’s parent company teamed up with Nvidia to use AI in its drive-thrus. However, these are only in select locations across America.
The goal of using AI is to speed up orders & improve accuracy, while also reducing the noise from humans mishearing orders. At least, that’s what’s going on in theory.
Voice AI order-taking gets pushback in drive-thrus
But not all AI systems have succeeded. McDonald’s previously had a drive-thru AI system experiment that ended in 2024 after too many mistakes.
The system gave customers items they didn’t ask for, forcing staff to fix the issues & creating more problems than it solved. It was a similar issue with Amazon’s “Just Walk Out” stores.
Facial recognition draws legal & privacy heat
A few stores are using facial recognition AI software to improve efficiency. However, the issue is that such systems raise questions about privacy, as well as the ethics of filming customers.
Cities like Portland have banned these systems outright in private business. They’re simply too controversial.
Why stores keep chasing in-store AI anyway
So why are retailers so interested in AI? Firstly, AI systems help staff with product findability & improve the accuracy of stock information. Having clearer data about the catalog changes how the stores recommend brand items. It also affects how they choose which products to substitute.
As for online AI systems, allowing customers to purchase products through ChatGPT makes the purchase process far simpler. It’s the same with in-store systems. It’s now easier for customers to find products, so they’re more likely to purchase.
Not all AI experiments are successful or useful, but brands are forging ahead in the AI race to get an edge over competition. Whichever brand nails its AI strategy will ultimately be the winner due to improved cost optimization and customer experience.
Sources: Please see here for a complete listing of all sources that were consulted in the preparation of this article.
