Kohl's Launches AI Gift Assistant as Part of Turnaround Strategy

Kohl’s Launches AI Gift Assistant as Part of Turnaround Strategy

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5.1.2026

Quick Facts

Kohl’s launched a conversational AI agent to help customers find gifts and assist store associates
The initiative builds on Google Cloud partnership dating to 2019 during company’s ongoing turnaround efforts
Move comes after 16 consecutive quarters of comparable sales declines with current year sales expected flat to down 2%

Kohl’s deployed a new AI-powered gift finding tool as the department store chain works to revive its struggling business. The conversational AI agent helps shoppers discover gifts and gives associates better tools to serve customers.

The technology builds on Kohl’s existing partnership with Google Cloud, which began in 2019. The company operates more than 1,150 stores and has been investing in cloud services to improve data center infrastructure and analytics capabilities.

Kohl’s has experimented with AI shopping tools since 2023. The retailer previously launched Kohl’s Storybook Magic, an AI platform that creates personalized holiday poems with gift recommendations. The company also developed augmented reality lenses on Snapchat, TikTok and Meta for gifting inspiration.

The AI rollout comes during a critical period for Kohl’s. The company reported its 16th straight quarter of comparable sales declines. Management expects fiscal year sales to finish flat to down 2 percent.

CEO Michael Bender unveiled a turnaround strategy in February focused on value-conscious middle-market shoppers. The plan emphasizes proprietary brands and aggressive value-pricing tiers to win back core customers who favor affordable options.

Kohl’s joins other retailers deploying AI shopping assistants. Target introduced a gift finder tool offering recommendations based on age and interests. Simon unveiled HolidAI in 2023 using ChatGPT 4.0 to guide shoppers through product databases.

The retail AI market is expanding rapidly. Global AI technology in retail reached $54.24 billion in 2026 and is projected to hit $287.1 billion by 2032. Retailers using AI and machine learning saw 14.2 percent sales growth between 2023 and 2024, compared to 6.9 percent for non-AI retailers.

Most consumers plan to use AI for shopping in 2026, with 80 percent expecting to use generative AI tools. About 61 percent have already used ChatGPT-style tools for online shopping.

The technology investment aims to improve conversion rates and customer experience. Agent-driven commerce experiences increased conversions by roughly 23 percent for some retailers, according to industry data.

Kohl’s faces operational challenges as cost cuts and tight inventory protect margins but potentially hurt sales. Lower inventory levels can mean lost sales and empty-looking shelves that discourage shopping.

Bender said the company does not plan to close additional stores from its current 1,150 locations. The AI initiative represents a technology-focused approach to maximize existing store productivity rather than expansion.