Target partners with OpenAI to use ChatGPT for AI-led shopping
TargetTarget(US:TGT) Yahoo Finance·2025-11-19 16:17

Core Insights - Target is facing challenges with soft traffic and uneven sales, prompting the company to innovate by integrating a storefront within ChatGPT [1][4] - The upcoming beta launch will transform OpenAI's assistant into a personal shopper capable of assembling multi-item carts and managing grocery orders, representing a significant tech and narrative strategy for Target [2][4] - Despite exceeding profit expectations in its latest earnings report, Target continues to experience lower sales and decreased store traffic, indicating ongoing struggles [3] Technology Integration - The AI initiative is part of Target's broader strategy to attract customers back, with the ChatGPT app allowing users to create curated shopping lists through conversation [4][5] - This operational approach aims to enhance logistics, including Drive Up pickups and in-store fulfillment, by integrating AI with Target's inventory systems [5][6] - Target has been utilizing OpenAI technology internally, with 18,000 employees using ChatGPT Enterprise and various tools to improve customer service and operational efficiency [7][8]