OpenAI and Target Launch AI-Powered Shopping in 2025

Target Corporation has teamed up with OpenAI to launch a pioneering AI-driven shopping experience integrated directly into the ChatGPT platform. This partnership aims to leverage the power of conversational AI to transform how customers discover, browse, and purchase products, enhancing convenience and personalization while streamlining checkout processes. The initiative arrives at a critical moment as Target seeks innovative strategies to boost sales and adapt to rapidly evolving consumer behaviors amid economic challenges.

What the Partnership Entails

Starting in late November 2025, Target customers can access a Target app embedded within ChatGPT, enabling them to engage in a conversational, curated shopping experience without leaving the ChatGPT interface. Users can request tailored product recommendations based on specific needs or events, such as holiday gatherings or family movie nights. The AI will suggest relevant items — for example, blankets, snacks, or party supplies — which can then be seamlessly purchased in a single transaction within ChatGPT, offering a faster and more intuitive checkout process.

Key features include:

Personalized product discovery: ChatGPT, enhanced by Target's data, helps customers find products suited to their preferences.
Multi-item purchases: Customers can add multiple items to their virtual cart and complete checkout within the chat.
Fresh food shopping: The app will include access to Target’s fresh food offerings, an uncommon feature in conversational commerce.
Linking Target Circle accounts: Upcoming updates will allow customers to link their loyalty accounts, unlocking personalized discounts and rewards.
Same-day delivery options: Plans to integrate same-day delivery services aim to provide faster fulfillment based on consumer demand.

Strategic Importance for Target

This collaboration represents a significant step in Target’s broader digital transformation and AI adoption strategy. The retailer is actively integrating AI technologies across its operations, from supply chain forecasting to store process optimization and personalized digital experiences.

Prat Vemana, Target's Executive Vice President and Chief Information and Product Officer, emphasized the customer-centric vision: "At Target, everything starts with the guest... Our goal is simple: make every interaction feel as natural, helpful and inspiring as chatting with a friend." He highlighted that AI is not just a tool but a core driver enabling Target to respond quickly to trends and enhance guest engagement.

Target is also expanding its use of ChatGPT Enterprise internally to boost productivity, streamline workflows, and foster creativity among employees. This internal use of AI supports the external customer experience, ensuring the company operates with agility in a competitive retail landscape.

Context: Retail Industry and AI Adoption

Target’s move follows a growing trend among large retailers adopting AI to connect with consumers in novel ways. Walmart recently announced a similar partnership with OpenAI to enable AI-assisted shopping through ChatGPT, reflecting the industry-wide shift toward conversational commerce.

The timing is strategic, coinciding with Target’s efforts to counteract recent financial pressures. The retailer reported a 2.7% decline in same-store sales and a 19% drop in profits in the latest quarter. By integrating AI-powered shopping tools, Target aims to rejuvenate its brand appeal and attract consumers increasingly reliant on technology for shopping decisions.

Market research supports this approach: A recent Harris Poll found that nearly half of Gen Z consumers trust AI as a personal shopper, valuing its ability to find deals and recommend products tailored to their tastes. Streamlining the purchasing journey through AI could help retailers like Target capture this demographic and increase conversion rates.

Future Prospects and Industry Impact

The Target-OpenAI partnership is viewed as a blueprint for the future of retail, where AI-driven conversational interfaces become commonplace. Fidji Simo, CEO of Applications at OpenAI, described the collaboration as an example of AI’s potential to create “useful and joyful experiences” for customers and employees alike, with ongoing enhancements planned to deepen the app’s capabilities.

As Target continues to integrate AI at multiple levels — from guest interactions to operational efficiencies — the partnership may accelerate retail innovation, setting new standards for personalized service and convenience.

Visual Assets

Official Target and OpenAI logos demonstrating the partnership.
Screenshots of the Target app interface within ChatGPT showing product browsing and checkout.
Photos of Prat Vemana and Fidji Simo from official press releases.
Infographics illustrating AI’s role in retail personalization and conversational commerce trends.

This collaboration marks a pivotal moment in retail technology, blending AI's conversational power with Target's extensive product ecosystem to reinvent the shopping experience for millions of consumers worldwide.