Home Depot Reportedly Banking on AI to Rebuild Sales

Home Depot has reportedly begun using generative AI to bolster its online shopping services.

The goal is to give consumers the same level of customer service on the company’s website as they’d find in brick-and-mortar locations, Jordan Broggi, executive vice president of customer experience and president of online for the home improvement retailer, told Bloomberg News in an interview published Thursday (March 6).

The new artificial intelligence (AI) tool, the report said, helps shoppers answer questions about products and projects, with plans to eventually add features such as design ideas, product comparisons and recommendations.

Broggi noted that the company faces some challenges here, such as consumer ambivalence toward AI and finding ways to offer the option without it becoming a distraction.

The report points out that Home Depot has used generative AI on its website and mobile app for about a year, with plans to expand this use into functions such as summaries of product reviews. In addition, the retailer also plans to employ the technology to help professional contractors and business account customers.

Home Depot’s professional customer base has become increasingly important as sales to do-it-yourself users have slipped in recent quarters.

Broggi said during the company’s earnings call that online and pro consumers were benefiting from an improved site experience from a browsing and search perspective.

“All those investments are coming together to drive an improvement in conversion rates and increased engagement across channels,” Broggi said. “We’re excited about the momentum there and excited about the investments we’ve made there.”

As noted here at the time, the company’s focus on omnichannel shoppers could hold promise. After all, research by PYMNTS Intelligence shows nearly 40% of consumers are now click-and-mortar shoppers, searching for products through both digital and physical channels.

“For these shoppers, the physical store serves as an extension of their online experiences,” PYMNTS wrote.

Meanwhile, Home Depot is just one of many retailers embracing AI. For example grocery chain Aldi recently announced it would begin using Digital Wave Technology’s generative AI solutions in the U.S. to automate the creation of product copy and product attribution.

A little more than three-quarters of business leaders rank generative AI as the most impactful emerging technology, according to research from the PYMNTS Intelligence and AI-ID collaboration, “What Generative AI Has in Store for the Retail Industry.”

The report also found that marketing and sales functions are leading generative AI efforts at 16% of consumer and retail companies, with 57% of marketing and sales teams pursuing GenAI initiatives compared to 31% of departments in other industries.

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