What: Target is expanding its AI-driven shopping toolkit with a new image-based Photo Search feature and an AI review-summarization tool, both launched this summer.

Why it is important: Target's results echo a pattern already visible across the sector: AI-powered discovery and assistant tools are translating directly into measurable conversion and spend gains, as seen at Macy's (nearly 400% higher spend) and Frasers Group (25% conversion uplift).

Target introduced a suite of AI-powered shopping features aimed at improving product discovery and personalization, according to a press release. In June, the retailer launched Review Insights, which uses AI to summarize details from product reviews and guide purchasing decisions; the company says this has led to an uptick in conversions and items added to carts. In August, Target debuted an AI-supported Photo Search feature in its mobile app, letting shoppers search for products using an uploaded or captured image.

Target also highlighted its Buy Again function, which surfaces frequently purchased items and relevant deals based on past shopping and has driven strong year-over-year growth in purchases, alongside a Continue Shopping feature launched last fall that reconnects customers with recently viewed products. "Guests move naturally between our stores and digital channels, and we're using AI and personalization in purposeful ways to help them find what they need faster, discover new possibilities and shop with confidence," said Sarah Travis, Target's chief digital and revenue officer.

The push builds on earlier tools including the Bullseye Gift Finder and Target Trend Brain, and follows a strong second quarter, with net sales up 5.3% year over year to $26.5 billion and net earnings roughly doubling to almost $1.9 billion.

IADS Notes: Target's expansion of AI-powered discovery and review tools builds on a strategy the retailer has been developing for some time: as noted by Retail Dive in September 2025, Target had already begun preparing its digital search and its Bullseye Gift Finder tool for generative-AI-driven, agent-mediated shopping. The commercial case for this kind of investment is increasingly well documented elsewhere in the sector: Fortune reported in March 2026 that Macy's "Ask Macy's" AI shopping assistant drove customers who used it to spend nearly 400% more than non-users, while Drapers covered a similar pattern at Frasers Group in April 2026, where the Ask Frasers assistant lifted conversion rates by 25%. Image-based discovery specifically is also gaining traction beyond Target: India Economic Times reported in August 2026 that Reliance Retail acquired Furrl, an AI styling platform that converts catalogue images into personalised, shoppable looks. More broadly, department-store groups are converting this kind of AI investment into measurable returns rather than experimental spend: as Perú Retail detailed in September 2026, Falabella's hyper-personalisation and computer-vision initiatives generated over US$78 million in AI-referred sales and more than 20% logistics efficiency gains.

Target introduces AI-powered photo search and review features