Retail leaders at Target, Lowe's and more on the AI investments they're plotting for 2026

"New artificial intelligence tools are poised to reshape the retail industry, but brands and retailers are still trying to identify the right playbook for incorporating this emerging technology into their business. Surveys conducted in the months leading up to Black Friday showed that anywhere from 33% to 83% of respondents used AI to do their holiday shopping in 2025. In turn, 97% of retailers plan to maintain or increase their AI investments next year, according to a survey from Ameprity."

"Meanwhile, a Deloitte survey shows that the vast majority of retailers are now using AI - or will be using it within the next 12 months - for everything from cybersecurity to pricing and promotion optimization to supply chain visibility. Against this background, Modern Retail's editorial team surveyed a half-dozen retail leaders, ranging from vice presidents at big corporations like Target and Lowe's to founders of digitally native startups, to discuss how they plan to incorporate AI into their businesses in 2026."

"At Kroger, our loyalty accounts are really our connective tissue, and they fuel a lot of what we do. And so, making sure that we can appropriately use machine learning to measure the impact and the performance of what we do at KPM will be a continual focus for us. KPM has long been using machine learning to make sure that we can provide advertisers and brands with the most accurate representation of their campaign performance."

Artificial intelligence tools are poised to reshape the retail industry as brands and retailers explore how to incorporate the technology into operations. Surveys before Black Friday found 33% to 83% of respondents used AI for holiday shopping in 2025, and 97% of retailers plan to maintain or increase AI investments. The majority of retailers are using or will use AI within 12 months for cybersecurity, pricing and promotion optimization, and supply chain visibility. Retail leaders plan cross-department AI rollouts in 2026 to improve customer experience, measurement, curation, and inventory planning. Kroger uses machine learning in loyalty programs to measure campaign performance and provide accurate reporting to advertisers.

Read at Digiday