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This holiday season, Target is tapping into the power of AI to give its sales a festive boost.

The retailer will be partnering with OpenAI to launch a“Target app” in ChatGPT to help consumers with their holiday shopping (1).

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Shoppers who are among ChatGPT's 800 million weekly users will be able to browse, build carts and checkout all within a chat interface.

But while the tech could help make shopping easier, it's important for consumers to use it wisely without overspending this holiday season.

How Target is using AI

This is how the feature works. In the ChatGPT app, you can tag Target and ask for ideas, like“Help me put together a cozy holiday movie night.”

ChatGPT will then suggest Target items (think blankets, snacks, decorations), let you add them to a basket, and buy everything without leaving the app. According to OpenAI, you'll be able to choose how to receive your order through either pick up options or shipping (2).

Target says the AI will eventually be able to predict what you may want to buy before you even ask. This is because the technology learns to figure out what your tastes and preferences are as you shop.

According to Prat Vemana, Target's executive vice president and chief information and product officer,“At Target, everything starts with the guest, and that means meeting them wherever they are, including emerging spaces like ChatGPT, where millions of consumers visit,” He says that Target is“one of the first retailers bringing shopping into this new channel” and that,“Our goal is simple: make every interaction feel as natural, helpful and inspiring as chatting with a friend.” (2)

For shoppers, this could be a game-changer. Inflation, currently at 3% (3) continues to squeeze budgets, especially for essentials and holiday gifts. PWC says that 84% of shoppers are expecting to cut back in the coming six months because of higher prices and rising cost of living (4).

The Target ChatGPT integration means fewer tabs open and potentially less price hunting. For shoppers who want to avoid bargain-hunting across dozens of sites, letting AI do the legwork could feel like a cheat code to make your festive season that much easier.

But it's not just about making things more convenient for the consumer. Target is struggling with falling sales, declining three quarters in a row. The ChatGPT feature launches just as Target leans into big price cuts and backs a $1 billion investment plan to try to refresh its business (5).

Retail analysts see bigger picture value, too. By popping up inside ChatGPT, Target is tapping into a massive, engaged audience.

On the financial and strategic front, TipRanks notes that Target is joining a growing group of major retailers, such as Walmart, Etsy and Shopify, who are betting on conversational commerce (6). Walmart's“Retail Rewired” report uncovered that 27% of shoppers now trust AI recommendations more than influencer endorsements, and they value AI that helps them compare prices, spot deals and plan purchases (7).

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AI holiday help, with a word of warning

Looking to take advantage of Target's newest AI integration? If you want to try Target's ChatGPT shopping feature, here's what you'll need to do:

• Open or install the ChatGPT app
• Start a conversation and tag“Target” in your question
• Build your cart based on the AI's ideas
• Checkout via Target and select how to receive your goods, all from within ChatGPT

Shopping couldn't be easier, but keep a close eye on your spending. When AI curates“baskets” filled with items tailored just for you, it can be tempting to buy more than you planned.

Keep in mind that just because the AI suggests it doesn't mean it's the cheapest option out there. Savvy shoppers should still check pricing on major purchases, especially gift items, across retailers, even with ChatGPT's help.

By offering ChatGPT users its shopping aisles with easy access, Target is betting big on AI to pull shoppers back in. And for Americans stretched thin on time and budgets, the tool could make holiday gift-giving decisions a lot easier. But it's important to remember that even though the tech can help guide you, you're still the one holding the wallet.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CBS News (1 ); OpenAI (2 ); US Inflation Calculator (3 ); PWC (4 ); Reuters (5 ); TipRanks (6 ); Walmart (7 )

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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