Retail Giants Kroger and Lowe’s Explore AI Shopping Agents While Retaining Control from Google

Retailers Navigate AI Shopping Without Losing Control

As artificial intelligence reshapes the retail landscape, large chains such as Kroger and Lowe’s are cautiously adopting AI shopping assistants. These tools help customers find products, offer support, and facilitate purchases, all while ensuring the retailers maintain control over how their products are presented and sold.

With customers increasingly turning to chatbots and automated agents for shopping decisions, retailers face the risk of losing influence over product recommendations and sales strategies. This challenge has prompted some companies to develop or support AI tools integrated within their own platforms instead of relying solely on third-party providers.

AI Agents Embedded Within Retail Apps

Kroger, for example, is testing an AI shopping assistant embedded in its mobile app that can compare products, handle transactions, and tailor suggestions based on individual customer preferences such as meal planning, price sensitivity, and brand loyalty. This approach keeps buying decisions within Kroger’s proprietary systems, mitigating reliance on external AI platforms.

Yael Cosset, Kroger’s Chief Digital Officer, emphasized the urgency of adopting AI: “Things are moving at a pace that if you’re not already deep into AI agents, you’re probably creating a competitive barrier or disadvantage.” This sentiment underscores the rapid integration of AI in retail shopping experiences.

Balancing Customer Reach and Brand Control

The retail sector faces a delicate balance. While integrating products into widely used AI chatbots expands reach, it also risks diluting customer loyalty, reducing ancillary sales, and cutting advertising revenue. When third parties control the shopping interface, retailers lose influence over how products are framed and sold.

This concern has made some retailers wary of selling directly through AI platforms developed by companies like OpenAI and Microsoft, which have introduced features enabling purchases within their own chatbots. Walmart, for instance, announced a partnership with OpenAI to allow shopping through ChatGPT, but many retailers prefer to maintain autonomy.

Diversifying AI Partnerships to Manage Rapid Changes

Maintaining proprietary AI tools is complex due to the fast-evolving nature of AI models and technologies. Lowe’s addresses this by layering Google’s AI shopping agent behind its own virtual assistant, Mylow, which has reportedly doubled conversion rates. However, Lowe’s also collaborates with multiple AI vendors, including OpenAI, to avoid over-reliance on a single system.

Seemantini Godbole, Lowe’s Chief Digital and Information Officer, remarked, “The tech we build can become outdated in two weeks,” highlighting the need for a diversified vendor strategy to keep pace with rapid AI advancements.

Kroger similarly partners with Google and companies like Instacart to support its AI agent initiatives, demonstrating a trend among retailers to blend vendor capabilities rather than commit exclusively to one provider.

Pragmatic AI Adoption Strategies Among Retailers

Not all retailers seek to own AI development. Papa Johns, for example, opts to leverage Google’s food ordering AI to assist customers with tasks such as estimating pizza quantities from uploaded photos, accessible via phone, website, and app. Kevin Vasconi, Papa Johns’ Chief Digital and Technology Officer, explained, “I don’t want to be an AI expert in terms of building the agents; I want to be an AI expert in terms of how to use them.” This reflects a practical approach focusing on AI application rather than internal development.

While AI agent-assisted shopping gains traction, it remains supplemental to traditional methods. Vasconi noted, “People still call our stores on the phone to order pizza in this day and age,” illustrating the gradual nature of AI adoption in retail.

Future Outlook: Testing, Caution, and Control

Analysts view Google’s AI retail tools as foundational aids that reduce barriers for companies hesitant to build AI systems from scratch. Gartner analyst Ed Anderson stated, “The real challenge here is application of the technologies. These announcements take a step forward so that retailers don’t have to start from ground zero.”

For now, retailers like Kroger, Lowe’s, and Papa Johns are experimenting with AI shopping agents while carefully weighing how much control to maintain over customer interactions and sales processes. Their cautious testing highlights an industry in transition, striving to balance innovation with brand integrity as automated shopping becomes more prevalent.

Fonte: ver artigo original

Chrono

Chrono is the curious little reporter behind AI Chronicle — a compact, hyper-efficient robot designed to scan the digital world for the latest breakthroughs in artificial intelligence. Chrono’s mission is simple: find the truth, simplify the complex, and deliver daily AI news that anyone can understand.

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