Will Target and ChatGPT’s Team-Up Actually Improve the Retailer’s Fortunes?

Following three consecutive quarters of same-store sales declines despite being engaged in a significant turnaround effort, Target recently announced two major pillars of its ongoing plan to right the ship: a further $1 billion in capital expenditures (in addition to the $5 billion already laid out for 2026) next year — aimed at store remodels, new locations, and digital fulfillment and tech enhancements — and perhaps more interestingly, a partnership with OpenAI’s ChatGPT model.

After signaling the potential capabilities in October, a Nov. 19 OpenAI press release explained further details, drilling down into promises based on improving operations for vendors and and team members, as well as offering a more frictionless experience for Target shoppers.

“A big part of the AI transformation is happening inside enterprises, and Target is a great example of what that shift looks like when it’s done with ambition and speed,” said Fidji Simo, CEO of Applications for OpenAI.

“We’re excited to work with Target as they weave intelligence throughout their business to create useful and joyful experiences for their customers and their employees,” Simo added.

As Target sees AI solutions rolled out through the retailer’s headquarters and now serving 18,000 employees, a number of chatbot-adjacent functionalities were underscored as being vital to smooth day-to-day operations.

• Agent Assist and Store Companion: These Target-based app tools aim to help workers in service centers and physical stores assist customers with ease, with relevant product information and support assists being on-call. Beyond Q&A duties, these two agentic apps are able to conduct price matches, initiate the returns process, and deliver back-and-forth chat responses without wait times.
• Shopping Assistant and Gift Finder: A simplified pair of interfaces that act as a personal shopper, giving casual and conversational recommendations to aid in browsing while also putting forth customized product suggestions on request. Interests, age, occasion, and other particulars of a query are all considered and handled for Target by these AI tools.
• Guest Assist and JOY solutions: Talking to guests and Target vendors alike, JOY is trained on 3,000-plus FAQs and is specifically aimed at the latter category. In sum, this pair fields inquiries while deferring to a human specialist upon request.

Target Also Nests Itself Inside ChatGPT, Making a Play for Casual Purchases Through the AI Interface

At least some of Target’s play appears to logically rest at being one of the many major retail partners to buy into the much-vaunted prediction of ChatGPT-driven consumer spend — although most of the press release focuses on customer-initiated interactions with the specific Target app within the ChatGPT ecosystem.

That shopper-facing Target app is slated for release next week, with accounts being linked to allow the building of baskets, fresh food purchases, curated browsing experiences, and fulfillment options. An example was given of a hypothetical Target shopper asking for help in planning a movie night, with appropriate items — blankets, candles, tasty snacks, and even slippers — being instantly picked and provided as purchase options to the questioner.

“At Target, everything starts with the guest, and that means meeting them wherever they are , including emerging spaces like ChatGPT, where millions of consumers visit,” said Prat Vemana, EVP and chief information and product officer for Target.

“We’re proud to be one of the first retailers bringing shopping into this new channel, partnering with OpenAI to make discovery through the Target app in ChatGPT as easy and joyful as browsing our aisles. Our goal is simple: make every interaction feel as natural, helpful and inspiring as chatting with a friend,” Vemana added.