Why genAI?

Shop floor employees play a vital role in customer experience and sales, but turnover rates are high in retail—creating challenges around onboarding and training. GenAI tools could help by providing in-store staff with quick answers to process and procedure questions and customer inquiries via an easy-to-use conversational interface.

How will it create impact?

GenAI-powered tools for in-store staff could potentially improve staff efficiency, enabling them to offer faster service and improve customer engagement. Target claims its Store Companion tool, a genAI-based chatbot available as an app on store team members’ handheld devices, has enhanced employees’ everyday work experience. The tool, which began rolling out in June 2024, has been used more than 50,000 times with an average chat time of less than 1 minute, Target’s COO and CFO Michael Fiddelke said during a recent earnings call.

How easy is it to implement?

Developing a custom AI tool could be expensive and complex, although Target says its in-house technology team developed the Store Companion chatbot in about six months by using frequently asked questions and process-related documents from stores. However, retailers will need to consider how staff would access the tool—and ensure it doesn’t become a distraction or add frustration. Target claims its Store Companion tool is a success, but not all the feedback from employees has been positive, per a July 2024 article in Forbes. If using existing handheld devices, retailers need to ensure the technology can be integrated; otherwise, they might need to upgrade.

Read the full report, including more use cases, Generative AI for Customer Service in Retail.