Retailers like Kroger, Lowe’s, and Papa Johns are exploring new ways to use AI to help customers shop. Instead of relying solely on third-party platforms, they are building or supporting their own AI-powered tools. These efforts aim to keep control over how products are shown, sold, and bundled as shopping becomes more automated.

Why Retailers Are Building Their Own AI Tools

Many big chains see AI as more than just a trend. They recognize that shopping habits are shifting toward automation, and they want to stay close to their customers. Kroger, for example, is testing an AI shopping agent inside its mobile app. This agent can compare items, handle purchases, and suggest products based on what customers usually buy or prefer.

Yael Cosset, Kroger’s chief digital officer, explained that moving quickly with AI is crucial. Companies that delay might fall behind competitors. The goal is to keep shopping decisions within Kroger’s own systems, rather than handing control over to external platforms. This way, they can better understand and serve their customers’ needs.

The Challenges of Going In-House

Building these AI systems isn’t simple. The underlying models change fast, and tools that work today might need updates soon after. Retailers are cautious about relying too much on third-party AI providers. While platforms like Google offer tools to help deploy AI agents on retail websites and apps, retailers want to maintain control over the customer experience.

Some major retailers have experimented with AI chatbots that can complete purchases directly. Walmart, for instance, announced plans to work with OpenAI to enable shopping through ChatGPT. However, these approaches can also weaken customer loyalty and reduce sales of add-on products or advertising revenue, since third-party platforms control the interface and the shopping journey.

For many retailers, developing in-house AI tools means they can customize the experience and keep their data private. Lauren Wiener from Boston Consulting Group said that more retailers are investing in their own capabilities rather than depending solely on external vendors. This trend reflects a desire for more control in a rapidly evolving AI landscape.

Spreading Risks and Managing Change

Using multiple vendors can help retailers reduce risk. But managing these complex systems is challenging. The models behind AI tools update frequently, and what works today might need revisions tomorrow. This ongoing change influences how retailers choose their technology partners and build their own solutions.

At Lowe’s, for example, Google’s shopping agent runs behind the scenes, helping customers search and buy products. While this setup offers convenience, it also means Lowe’s needs to stay on top of the latest AI developments to keep their tools effective. Retailers are balancing the benefits of AI automation with the need to control the shopping experience and protect their brand.

Ultimately, the shift toward in-house AI assistants shows how serious retailers are about maintaining their edge. They see AI not just as a way to enhance shopping but as a strategic tool to stay competitive in a changing retail world.

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• https://www.artificialintelligence-news.com/news/kroger-and-lowe-test-ai-agents-without-handing-control-to-google/