On the eve of Christmas in 2023, the American large-scale chain retailer Target announced that it would "enhance the holiday shopping experience" through artificial intelligence technology. From launching an AI chatbot called "Store Companion," to introducing a predictive inventory system, to deploying a marketing platform called "Roundel," Target proudly claims it is creating "the future of retail."
But reality is far colder than its promotion.
A class-action lawsuit claims that this so-called "technological innovation" is actually part of a massive surveillance program, and may even involve the use of facial recognition software. One plaintiff stated that shortly after shopping at a store in Illinois, they received a LinkedIn notification saying that a Target loss prevention manager had viewed their profile — an unsettling coincidence that raises privacy concerns.
Meanwhile, Target's much-touted AI strategy seems to have failed to deliver the expected results. The first-quarter fiscal year 2025 financial report showed a year-on-year drop in sales of $2.45 billion, with overall revenue declining by 3% and store foot traffic continuing to decrease. This performance prompted Target to change its full-year financial forecast from positive to negative, causing the stock price to plummet.
Although the company attributes its poor performance to tariff policies and consumer boycotts triggered by "de-DEI," Target's chosen "solution" is still: more artificial intelligence.
The newly established "Multi-Year Corporate Acceleration Office," led by COO Michael Fiddelke, aims to "more boldly use technology and AI" to modernize the inventory management system. However, from a consumer perspective, the actual problems have not been resolved — complaints about long wait times for self-checkout, empty shelves, and messy stores continue.
"Artificial intelligence can predict demand and prevent stockouts," Target CIO Brett Craig once boasted in 2023. However, two years later, this system has not stopped customers from leaving.
Target's bold leap into AI finds itself in an awkward predicament: dazzling technical narratives cannot mask the reality of operational imbalance. As the "AI omnipotence theory" fades, a more realistic question looms: Can artificial intelligence really save a retail giant losing its customers' hearts?