Costco CEO Ron Vachris: "I don't see AI making choices" for the retailer
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Costco CEO Ron Vachris: "I don't see AI making choices" for the retailer
Costco uses AI across multiple business areas and has seen sales increases in some departments, including pharmacy. The CEO views AI as an assistive supplement that complements employees and existing systems in pharmacy, gas stations, accounting, and some IT work such as code writing. The company has not displaced people because business growth has accelerated. Employees who previously handled certain tasks have moved into more forward-thinking roles. Some decision-making, such as choosing items, will remain with skilled buyers rather than being made by AI. AI is positioned as a way to improve the company rather than replace human judgment.
"“AI has been extremely good for our company in an assistive nature,” Vachris said. “What we found is it has worked very well complementing our employees and the systems that we put in place in the pharmacy, in our gas stations and in the accounting department that we have-and also in some of our IT. It was writing some code.”"
"“Everyone that we put in place has enhanced the business,” Vachris said. “We've not displaced people because now the business is growing at a faster rate. But those employees that were doing those tasks before have now elevated up to more of a forward-thinking role.”"
"“I don't see AI making choices on items for Costco,” he said. “I don't know that we'll ever take that out of the hands of a skilled buyer. AI won't be doing evaluations with our employees, but there is a great place for developing AI systems, and it's going to make us a better company.”"
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