Target Turns to AI to Spruce Up Holiday Shopping

Target is introducing new technology features to help customers shop for the holidays.

The new features, announced Wednesday (Nov. 12), include gift recommendations powered by artificial intelligence (AI), as well as store navigation assistance and shopping list scanning.

“We know so many of our guests love shopping our stores with their phones in hand, and when they use the Target app in-store, their basket sizes are nearly 50% higher as they discover more of what they love,” Cara Sylvester, chief guest experience officer, Target, said in a news release.

“We’re committed to making the shopping experience this year even more connected, personal and intuitive, with innovations that help guests discover the hottest items and Target products they love at a great deal. It’s all about meeting them where they are, simplifying gift-giving and helping families focus more on the joy of the season.”

According to the release, Target is now offering AI-powered tech that lets shoppers find and purchase everything on their wish lists while also getting new inspiration. The “new, conversational” AI-powered Target Gift Finder allows shoppers to type in details about the gift recipient or occasion into the Gift Finder to get tailored recommendations.

There is also the new List Scanner, which lets guests scan their handwritten lists in the Target app — or scan holiday wish lists for their families — to add items into their cart.

Target is betting on convenience ahead of a holiday shopping season that could see consumers pulling back.

The latest Holiday Spending Survey from The Conference Board, released earlier this week, shows that the average consumer plans to spend about $990 on holiday-related purchases this year. That’s  a 6.9% decrease from $1,063 in 2024 and is in line with spending plans from 2023.

The downturn applies to both gift budgets, down 3.9%to $650, and non-gift items such as food and decorations, which fell by 12% to $340. After adjusting for inflation, these numbers are at multiyear lows, the board said Tuesday (Nov. 11).​

“Several years of relatively high inflation have raised price levels and squeezed consumers’ wallets,” Conference Board Senior Economist of Global Indicators Stephanie Guichard said in a news release.

As noted here, this trend should come as no surprise, as research by PYMNTS Intelligence from this spring showed more than 8 in 10 consumers are either buying less, “trading down” or stretching out payments.