Google & Target Bet on AI to Transform Shopping!

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Google’s AI-Powered Shopping Evolution

Google has rolled out a suite of AI tools designed to make online shopping more immersive and personalized. These tools cater primarily to fashion and beauty shoppers, aiming to enhance visualization and simplify decision-making.

What’s New?

• Vision Match Tool: Mobile users can describe an item, and AI generates an image of what it could look like while linking to related products.

• Enhanced Virtual Try-On: Google expanded its virtual try-on feature to include pants and skirts, in addition to tops and dresses. Users can now see garments on models with different body types.

• AR Beauty Feature: Customers can virtually try on multiple beauty products at once, experimenting with celebrity- and influencer-inspired looks.

Why It Matters

Google's research revealed that over half of shoppers struggle to find specific clothing items. By introducing AI-driven search tools, Google aims to bridge that gap, helping users make informed purchase decisions.

The company has been integrating AI into its shopping experience for some time. Last year, Google launched an updated version of Google Shopping, incorporating AI-powered tools that also assist with in-store purchases. For instance, its AI-powered Google Lens lets users take a photo of a product and instantly see more details or locate similar items nearby.

Google’s latest innovations align with its broader vision of making online shopping more interactive. AI now curates products, creates personalized deal pages, and enhances virtual try-on experiences—placing personalization at the heart of its strategy.

The Bigger Picture

Google isn’t alone in leveraging AI for shopping experiences. Wayfair recently launched “Muse,” an AI-powered imagery tool that helps customers find products by browsing AI-generated images. As more retailers adopt similar technologies, AI-driven personalization is quickly becoming a standard in eCommerce.

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Target’s AI-Powered Shopping Experience

Target is taking a different approach, using AI and social media trends to enhance digital shopping and improve product discovery. Executives recently highlighted their AI-driven strategy during an earnings call, emphasizing how the retailer is merging digital and in-store experiences.

How AI is Changing Shopping at Target

• AI-Powered Product Discovery: Over a third of in-store shoppers use Target’s app while browsing. AI uses these interactions to generate personalized product recommendations and promotions.

• Trend Monitoring via Social Media: Target’s AI tools track viral trends on platforms like TikTok to identify emerging styles. When the leopard-print “mob wife” aesthetic gained popularity, inspired by The Sopranos’ 25th anniversary, Target quickly collaborated with vendors to get relevant products online within days and in stores within weeks.

• Generative AI Enhancements: Target has introduced AI-generated product summaries and an AI-powered gift finder, helping customers navigate their choices more efficiently.

The Business Impact

Speed is a key competitive advantage for Target. The company reduced its go-to-market cycle from seven months to just eight weeks, allowing it to introduce trending products faster than before.

Beyond product discovery, AI plays a growing role in customer engagement. Whether through influencer recommendations, product reviews, or AI-driven customer support, shoppers increasingly rely on digital experiences before making a purchase.

A Look Ahead

Target is undergoing a multiyear strategic transformation, aiming for $15 billion in sales growth by 2030. This includes revamping merchandise, opening 20 new stores this year, and remodeling existing locations. However, the company reported a slight decline in net sales for Q4, citing economic uncertainties and tariffs as potential challenges for Q1 profits.

Final Thoughts

The retail industry is shifting rapidly, with AI playing a crucial role in improving personalization and customer experience. Google’s AI shopping tools enhance online discovery, while Target is integrating AI with social media trends to refine in-store and digital shopping experiences. As AI continues to evolve, expect more retailers to leverage its power to reshape how we shop.