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Target’s ChatGPT Initiative: Securing Retail’s Future as Consumer Preferences Evolve

Target’s ChatGPT Initiative: Securing Retail’s Future as Consumer Preferences Evolve

Bitget-RWA2025/11/19 12:28
By:Bitget-RWA

- Target integrates ChatGPT into its platform to boost engagement and efficiency amid soft demand, leveraging AI for trend analysis and customer service. - OpenAI's GPT-5.1 with customizable personalities and 1M+ business users highlights AI's expanding role in retail, as brands like Target compete with Walmart . - Agentic AI systems challenge traditional retail models, prompting Target to prioritize on-site tools to retain data control and brand loyalty while cutting 1,800 roles. - Analysts warn retailers

Target (TGT) is ramping up its digital overhaul by embedding OpenAI's ChatGPT into its shopping experience, aiming to boost both customer interaction and operational productivity as it faces sluggish demand. After recently lowering its profit forecast due to reduced discretionary spending, the retailer is turning to artificial intelligence to identify emerging trends, enhance customer support, and better compete with companies like Walmart

. This collaboration comes on the heels of OpenAI's launch of GPT-5.1, a new version that allows for customizable user personas such as "quirky," "candid," and "efficient," .

The growing use of AI in retail coincides with OpenAI's announcement that

, including industry leaders like Cisco, Lowe's, and Morgan Stanley. For , this technology is a key part of a comprehensive plan to rejuvenate its brand, which has been losing market share as consumer preferences shift and competition intensifies. The retailer's "Fun101" campaign, , has already delivered promising results, with toys and sporting goods seeing double-digit sales increases. However, categories like apparel and home goods continue to struggle as consumers focus more on necessities than non-essential items .

The move toward AI-powered solutions is part of a broader trend in retail toward agentic AI systems—autonomous technologies that assist users and simplify the shopping process. These platforms, which include both third-party agents like ChatGPT and proprietary retailer assistants, are transforming how brands connect with shoppers. While third-party agents can disrupt traditional retailer-customer relationships by consolidating data and enabling purchases across platforms,

to safeguard customer information and strengthen brand loyalty.
Target’s ChatGPT Initiative: Securing Retail’s Future as Consumer Preferences Evolve image 0
OpenAI's Instant Checkout, now adopted by Walmart, Etsy, and Shopify, , enabling AI to manage transactions while ensuring that retailers retain control over their data.

Experts in the field caution that the emergence of agentic AI could significantly alter current retail frameworks. "

," stated analysts from Bain & Co., pointing out that brands with proprietary data or specialized knowledge—such as Home Depot's AI assistant Magic Apron—can stand out in a saturated market. Meanwhile, innovations like "predictive intent engines" and "neural commerce platforms" are by embedding retail into smart devices and voice-activated assistants.

Target's recent restructuring,

, highlights the pressing need to adapt to these shifts. While Walmart's vast scale and diverse revenue sources—from online sales to advertising and membership services—give it a short-term advantage, Target's emphasis on customer experience and local fulfillment may yield benefits as consumer sentiment improves . Target's future plans rely on striking a balance between automation and human touch, ensuring that AI supports rather than replaces the in-store shopping experience.

As the retail sector continues to change, the effectiveness of AI adoption will hinge on retailers' ability to build trust, remain transparent, and keep control over crucial aspects like checkout and data management. With the holiday season approaching, the competition to reshape the shopping experience is intensifying.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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