Large retailers are using AI to overhaul customer experience, supply chain operations, and customer offerings in the second half of 2026. Executives from Gap, Dollar General, Ulta Beauty, and Kohl's highlighted how they're using AI technologies, including chatbots, predictive models, and agentic AI systems in their recent earnings calls (Retail Dive - Technology). Ulta President and CEO Kecia Steelman noted the company is in early stages of applying AI across key corporate uses to enhance productivity and drive efficiency (Retail Dive - Technology).
Retailers are turning to AI as consumers become more cost-conscious amid rising gas and grocery prices. Gap Inc.'s capital expenditure is expected to reach $650 million this year for new stores, remodels, technology, and supply chain investments (Retail Dive - Technology). Ulta is leveraging AI-powered sourcing capabilities to optimize omnichannel inventory and using AI for search and discovery through enriched product information on platforms like ChatGPT, while also promoting its on-site shopping agent, Ulta AI (Retail Dive - Technology). Kohl's CEO Michael Bender reported early signs of success with the store's AI shopping assistant, resulting in stronger conversion and higher revenue per visit (Retail Dive - Technology).
According to Bain & Co. partner Aaron Cheris, most retailers are not pursuing a full AI-first transformation but instead overhauling specific business aspects. Examples include Home Depot's generative AI shopping tool Magic Apron and Walmart's commerce agent Sparky. Dollar General is building agentic operating systems for enterprisewide workflows to improve productivity (Retail Dive - Technology).