What: Target is prioritizing generative engine optimization (GEO) and AI-driven search, preparing for agent-to-agent commerce and more complex, contextual product discovery across its digital platforms.

Why it is important: Target’s GEO strategy demonstrates the growing importance of contextual, AI-powered discovery and the need for retailers to optimize for both human and agent-driven shopping journeys.

Target is rethinking its digital search strategy by focusing on generative engine optimization (GEO) and AI-driven product discovery. As shoppers increasingly use longer, more complex queries and generative AI tools, Target is training its systems and agents to deliver relevant, contextual results both on its own website and through third-party shopping assistants. The retailer’s Bullseye Gift Finder, a generative AI-powered recommendation tool, saw strong adoption during the 2024 holiday season and is now being scaled for other key retail moments. Target is also preparing for a future where agent-to-agent commerce becomes standard, requiring its product data and digital experiences to be optimized for both direct and AI-mediated interactions. The company’s research shows that consumer trust and willingness to use AI shopping assistants depend on the relevance and accuracy of results, making contextual discovery and personalization critical for future digital retail success.

IADS Notes: Target’s focus on generative engine optimization (GEO) and AI-driven search reflects a broader transformation in retail technology and consumer behavior. As reported by The Robin Report in December 2024, generative AI adoption surged during the holiday season, with 38% of shoppers using AI tools and major retailers like Target leveraging these technologies for personalized recommendations and product discovery . BCG in July 2025 further highlighted the rapid consumer acceptance of AI shopping assistants and the importance of contextual, relevant results for building trust . BoF in January 2025 and Forbes in February 2025 described the rise of agentic commerce and the shift toward longer, more complex search queries, with Target and Amazon preparing for agent-to-agent interactions and optimizing for GEO . Journal du Net in September 2025 and Retail Dive in November 2024 noted that AI agents are mediating e-commerce transactions, requiring retailers to train both internal and third-party agents for effective product representation and discovery . Bain & Company in November 2024 and McKinsey in February 2025 emphasized that trust and contextual accuracy are critical for AI adoption, with 71% of consumers expecting personalized interactions and 76% expressing frustration when these aren’t delivered . Finally, Forbes in March 2025 and WWD in October 2024 reported that 87% of retailers implementing generative AI saw at least a 6% revenue increase, confirming that AI is now essential for maintaining competitive advantage in retail .

How Target is rethinking search for generative AI