Target names first chief AI officer as retail rivals race on AI

Target is betting its turnaround on AI, naming its first chief AI officer as retail rivals race to embed the technology across stores, supply chains, and customer experiences.

Target named Chandhu Nair as its first chief AI officer and senior vice president on Tuesday, putting the technology at the center of its recovery plan as retail rivals Walmart, Gap, and Best Buy accelerate AI deployment across stores and supply chains.

"The most meaningful AI stories won't be about what happens in a lab," Nair said in a statement. "They'll be about what happens on the front line — how we make shopping easier for a guest, give a team member a better tool, make a business decision with more confidence or bring a new idea to market faster."

Nair joins from Lowe's, where he spent more than six years as senior vice president of stores, data, AI and innovation, and previously held roles at Staples and Gap. He also cofounded a data analytics software company and a business strategy consulting startup. Target promoted Purvi Shah to senior vice president of user experience, pairing AI with human-centered design. Shah spent four years building Target's UX systems, including helping launch a conversational shopping experience in ChatGPT eight months ago.

The appointments come as Target works to recover from sluggish performance and win back shoppers and investors. The company has already deployed Target Trend Brain, a generative AI tool that identifies styles, colors, and materials customers are likely to search for, and last holiday season launched a conversational AI program in ChatGPT to help shoppers find gifts.

AI moves from the lab to the store floor

Nair's mandate spans inventory management, faster decision-making, and customer-facing tools. In his statement, he said he is focused on a "more coordinated approach" to AI for Target, including improving how the retailer manages inventory and enabling faster decisions.

The chief AI officer title is spreading beyond tech companies. Meta, Google, and IBM created the role early, but Eli Lilly, Pfizer, Accenture, and PwC have also appointed chief AI officers, reflecting the technology's reach across industries.

Walmart has been rolling out AI tools and agents across its stores and supply chains to enhance customer experience and internal processes. Gap partnered with Google's Gemini earlier this year, and Best Buy has collaborations with OpenAI and Google. Former Walmart CEO Douglas McMillon told CNBC in December that he stepped down in February partly because he wanted a successor "faster" at tapping AI's potential. John Furner took over the role.

For Target, the stakes are measurable. AI investments touch every part of its operations — from predicting demand to personalizing the online shopping experience — and the company is betting that faster, more coordinated AI deployment will translate into better margins and customer retention. Target has not disclosed specific AI investment figures or projected returns from the new initiatives. The executive hires show a commitment to modernization, though the immediate market impact is expected to be limited as investors watch for measurable results from the AI push.

This article is for informational purposes only and does not constitute investment advice.