When Target’s technology team gathered for its annual Demo Day, the event wasn’t just a showcase of software. It was a preview of how one of America’s largest retailers plans to merge artificial intelligence (AI) and human ingenuity to redefine the store experience.
In a recent company blog post, chief information and product officer Prat Vemana said technology is becoming central to how Target operates and competes.
“Our moment to push Target forward is here,” Vemana said in a Q&A for Target’s corporate site. “We are building a company that moves with the guest, anticipates needs, adapts to preferences and delivers a consistent experience at scale, in stores and online.”
The retailer has spent the past 18 months reorganizing around a new “product operating model” that fuses technology, product, user-experience, and enterprise teams. The goal is to accelerate innovation that directly improves how customers shop, whether online or in store.
Target is No. 5 in the Top 2000. The database is Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 64 in the Global Online Marketplaces. That database ranks the top such marketplaces by third-party gross merchandise value (GMV).
How Target will use generative AI
Among Target’s most visible initiatives is Trend Brain. The generative AI platform scans global data to identify emerging styles and design patterns. The system helps merchants spot trends early and make faster buying decisions — an effort to fuse machine intelligence with human creativity.
AI also underpins Target’s inventory management and store operations. Behind the scenes, algorithms now monitor shelf stock and product flow in real time. They alert team members before shortages occur. Other tools optimize checkout and fulfillment, connecting store and digital systems across 2,000 locations nationwide.
The company’s digital platforms are also getting smarter. A rebuilt search and recommendation engine interprets natural-language prompts — like “cute,” “eco-friendly ” or “sturdy” — to deliver results that reflect intent and availability. In stores, the Target app’s “Store Mode” helps guests navigate aisles, locate deals and check product availability.
Technology isn’t replacing Target’s workforce. It’s augmenting it, according to Target. Store associates use AI assistants like Agent Assist and Store Companion to handle real-time questions and inventory tasks. Meanwhile, engineers experiment with an internal idea-testing platform called JOY that manages supplier inquiries, and AI-driven cybersecurity tools continuously scan for vulnerabilities.
“When guests walk into a Target store, AI quietly supports the experience behind the scenes,” Vemana said. “It helps reduce checkout times, guide team members to assist guests faster in the aisle, streamline returns and Drive Up, and ensure shelves are stocked with the right products.”
For investors and analysts, Target’s message is clear. The company is positioning itself as a tech-led retailer, not merely a retailer with technology. The company’s long-term advantage may depend less on store count and more on how effectively it uses AI to unify its operations, supply chain and customer experience.
As Target heads into the holiday season, its strategy revolves around three priorities:
- Strengthening merchandising authority
- Elevating guest experience
- Accelerating technology deployment
Every initiative, from AI forecasting to digital fulfillment, is designed to keep customers engaged in an increasingly hybrid retail world, the retailer said.
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