Home Depot Inc. is betting on generative AI to improve online shopping — part of the big-box retailer’s efforts to revive sales and get back to steady growth.
A new tool on the home-improvement chain’s website helps answer shopper questions about specific products and projects. In the coming months, the company will also offer features like design ideas, product comparisons and recommendations.
Home Depot is looking to bring the same level of customer service from its stores to the company’s website, especially for products that people might be unfamiliar with, Jordan Broggi, executive vice president of customer experience and president of online at Home Depot, said in an interview.
Retailers are looking to use generative AI, which can create content such as images, text and audio, to make the online shopping experience faster and more convenient. Walmart has said it’s building generative AI tools for customers and employees, including personalized content.
Broggi said challenges include customers’ mixed levels of appetite for testing the technology, as well as finding a way to offer the option without distracting shoppers.
Home Depot has been using generative AI on its website and mobile app for about a year and is further expanding for functions such as summaries of product reviews. The company also plans to use the technology to help professional contractors and business account users.
This year’s spring season — a key time of year for home renovations — is especially important for Home Depot following two years of soft growth. After a pandemic-driven surge, high interest rates and elevated inflation have prompted consumers to stay on the sidelines for big-ticket purchases and projects that typically require financing. In response, Home Depot is focusing on selling more products to professional contractors.
Company executives said last month that demand is improving for some housing purchases and that consumers are starting to see higher rates as the new normal. Still, larger home projects like flooring and kitchen renovations remain under pressure and the company said it’s tough to predict to what extent the market will rebound.
