The retail landscape is witnessing significant advancements in digital innovation, as Shipt, a delivery app, has rolled out a new AI-powered tool to streamline the shopping experience. The app, owned by Target, launched “Ask Shipt” last Wednesday, an AI assistant designed to assist users in crafting their shopping lists either via text descriptions or by analysing uploaded photos of food items to suggest needed ingredients.
Shipt and Instacart Unveil AI Assistants Simultaneously
Notably, Shipt’s announcement coincided with Instacart’s introduction of its own AI assistant, “Clementine.” This feature also aids shoppers in generating lists and is available for integration on other retailers’ platforms, expanding its reach beyond Instacart’s core app.
Enhancing User Experience with AI
Katie Stratton, Shipt’s chief growth and strategy officer, highlighted the company’s mission to simplify the often challenging process of creating shopping lists and adding items to a cart. Last month, Shipt expanded its digital capabilities by integrating with platforms like ChatGPT and Claude, permitting users to build carts over these services. Users have the autonomy to adjust their lists before proceeding to checkout or sharing them with others.
Stratton emphasized the needs of customers who might be uncertain about products. “Oftentimes, you don’t know exactly what you’re seeking,” she remarked, advocating for the ability to describe shopping needs verbally for the AI to interpret and assist effectively.
Competitive Edge and Additional Features
The introduction of similar AI technologies by competitors like Instacart indicates a widespread consumer demand for more efficient shopping solutions, according to Stratton. Shipt’s application further distinguishes itself with features like recommending “Shipt Kits”—curated bundles tailored for specific occasions or dietary preferences, such as gluten-free options.
In a strategic advertising move, Shipt leverages its retail media arm, Shipt Media. The platform allows brands to bid for placement on user-generated lists, enabling them to promote specific products to consumers actively seeking recommendations.
Shipt vs. Instacart: A More Curated Experience
Despite Shipt’s smaller operational scale compared to Instacart—housing approximately half the number of independent contractors and retail partners—Stratton views this as a strength, offering a curated and personalised shopping experience. A unique service feature is the option for customers to choose a “preferred shopper” to fulfill their orders, emphasizing personalisation and trust in the shopping process.
Even as Target oversees Shipt, the delivery service operates independently. In parallel, Target has ventured into AI improvements, launching features like AI-powered photo searches and review summaries. Though Target’s direct consumer AI chatbot is still absent, partnerships with tech giants such as Google, Microsoft, and OpenAI extend its capabilities through third-party assistants.
According to Target CEO Michael Fiddelke during an August earnings call, the company’s digital engagement via external AI partners is growing at a rate more than 3.5 times the industry average, highlighting a trend of increasing consumer acceptance of AI-enhanced shopping experiences.
Reporting based on coverage first published by modernretail.co.