Sephora uses AI to recommend skincare products. Smith Collection/Gado/Getty Images Major retailers, such as Walmart and Target, are integrating AI into their shopping experiences. Retailers have partnered with AI companies, such as OpenAI, and developed their own tools. AI assistants can help with product recommendations, checkout, and customer service. Retail is becoming a big battleground in the artificial intelligence arms race. Since the introduction of ChatGPT in 2022, AI chatbots have had a meteoric rise in popularity. This year, more major retailers got in on the hype, unveiling plans to offer AI tools that can make shopping easier for consumers. They're investing time and money in partnering with AI companies like ChatGPT maker OpenAI, or building their own large language models to create shopping assistants or simplify the checkout process. Shoppers are already using AI. About 78% of adults said that AI was involved in their holiday shopping in some capacity, according to a November survey of about 1,000 US adults published by customer service support company Liveops. Liveops found that 89% of Gen Z used AI during holiday shopping. Their grandparents also seem to be checking out the services; 60% of baby boomer respondents, born between 1946 and 1964, used it as well. In an October survey from PwC, more than half of the respondents said they planned to use AI for price checks, trip planning, or writing messages this holiday season. Retailers aren't the only ones building AI-powered shopping experiences. OpenAI, for example, is integrating e-commerce into ChatGPT with its Instant Checkout feature, which allows users to search for and purchase items from select retail partners directly within their chats. Here's what eight major retailers have said publicly about how they're using AI to transform the way we shop. Walmart Joe Raedle/Getty Images Walmart introduced the world to its AI shopping assistant, Sparky, in June. Shoppers can use the chatbot in the Walmart app to find products, read reviews, and receive personalized purchase recommendations. The retail giant rolled out additional features in the app for the holiday season, including help with party planning, a 3D showroom, and audio product descriptions and reviews. Walmart also said in October that it and sister company Sam's Club would be partnering with OpenAI. The deal enables customers to shop through ChatGPT using the platform's Instant Checkout feature. Target Target said it was laying off around 1,000 corporate employees. Erik McGregor/LightRocket via Getty Images In November, Target and OpenAI launched a custom Target app in ChatGPT. With this feature, shoppers can purchase multiple items in a single transaction, shop for fresh food, and select their preferred shipping method, the companies said. "This is a stepping stone toward the way some people will eventually shop," Brad Thompson, senior vice president of technology at Target, said in a statement when the app launched. "We wanted to be early and have a role in how that path evolves." Target's app also features its own AI-powered tools, including one that enables users to scan their written grocery list and have the items automatically added to their cart. The retail giant launched a holiday-themed AI shopping assistant that suggests gift ideas based on user prompts. Amazon The Amazon logo on the façade of Amazon Germany's headquarters in Parkstadt Schwabing in Munich. Matthias Balk/picture alliance via Getty Images Amazon's AI-powered shopping assistant Rufus is growing. Rufus had over 250 million customers this year, with monthly users up 140% year-over-year, CEO Andy Jassy told analysts in October. The AI shopping assistant has been around since 2024, offering consumers personalized product recommendations. Rufus generally appears alongside search results as a panel where users can choose from shopping-related prompts or ask their own questions to find deals on the platform. "Our goal is to save customers time and money by making online shopping even simpler with real-time information and insights of experts," said Rajiv Mehta, vice president of search and conversational shopping at Amazon, in a November press release. eBay Klaudia Radecka/NurPhoto via Getty Images Online marketplace eBay unveiled an AI-powered shopping agent in May that would personalize the shopping experience. The company said that the shopping agent would show up for customers throughout their shopping journey, either by reacting to a request or through in-line messaging on the page a user is visiting. "Our AI shopping agent has given buyers a new way to shop across our inventory, with personalized product picks and expert guidance based on their individual shopping preferences," CEO Jamie Iannone said on the company's October earnings call. He said the company built its large language models in-house to perform specific shopping agent tasks, and it's been fine-tuning them. It's "poised to gradually bring agentic capabilities into the core of eBay's business through the main search experience over the coming quarters," Iannone said. Home Depot Home Depot's weak quarter shows even financially stable Americans are tightening their spending. Kevin Carter/Getty Images Home Depot created an AI tool, called Blueprint Takeoffs, for professional builders, renovators, and remodelers, a core pillar of the retailer's customer base. The tool is named after takeoffs, which are material lists and estimates that can be time-consuming for workers to make themselves. Home Depot said the tool can handle tasks for a single-family project that should take weeks within a few days. "The speed and accuracy of the Blueprint Takeoffs tool give Pros more time to focus on what matters most: serving their customers and growing their businesses," said Mike Rowe, executive vice president of Home Depot's pro business, when Blueprint Takeoffs was announced in November. Lowe's Jakub Porzycki/NurPhoto via Getty Images Lowe's introduced Mylow, an AI-powered virtual home improvement assistant made in collaboration with OpenAI, in March. The retailer said it provides the expertise of a Lowe's associate at customers' fingertips. The assistant was designed to provide step-by-step instructions for DIY projects, offer design inspiration, and help locate specific products at Lowe's. "Our virtual assistants, Mylow and Mylow Companion, which are built on an OpenAI platform, are answering nearly 1 million questions a month about everything from product specs to project know-how to the status of a customer order," CEO Marvin Ellison told analysts in November. Looking ahead to 2026, Lowe's visualizes an experience where users can snap a photo of their space and see it reimagined with the power of AI, Joe Cano, Lowe's senior vice president of digital commerce, told ModernRetail in December. Abercrombie & Fitch Plexi Images/GHI/UCG/Universal Images Group via Getty Images Abercrombie & Fitch is in the midst of a revival, and the company said in a November earnings call that it's investing in AI to enhance the customer journey. It recently started using AI agents in customer service, for example. The company is also kicking off in November a partnership with PayPal, which it said will enable customers to browse the retailer's catalog and complete transactions within their AI conversations on AI answer engines like Perplexity. Abercrombie & Fitch is one of several retailers that will be integrated into the ecosystem. Sephora Kevin Carter/Getty Images Beauty retailer Sephora is no stranger to digital tools that help customers find what they're looking for. Over the years, it has introduced technology such as SkinIQ, a quiz to help determine your skincare needs, and the FitSkin device, which scans the skin for a similar purpose. Sephora gave that process an AI upgrade in March with the Smart Skin Scan. Using the technology, consumers can scan their face and receive a four-step skincare routine based on the analysis. The feature is available in the Sephora app. Earlier this year, Sephora also launched Sephora AI Beauty Chat, a generative AI chatbot, on its website and app. The company's AI tools aim to provide "insightful recommendations to enhance a personalized shopping experience and smart gift giving," Nadine Graham, senior vice president and general manager of e-commerce at Sephora North America, told Business Insider. Read the original article on Business Insider