Target execution may soon be handled by AI. Retailers want shoppers to know that their purchases are going to be a big deal.
Target updated its terms of service on March 22 in preparation for the start of its partnership with AI bot Google Gemini. This integration could allow AI to suggest products and complete purchases on behalf of shoppers. Agents cannot purchase items without the shopper’s approval.
The new terms of service state that if a customer authorizes an AI shopping agent to act on their behalf, those purchases or transactions “will be deemed to be transactions authorized by the customer.”
In other words, even if the bot orders the wrong item, the customer still has to pay.
The policy also notes that Target does not guarantee that third-party AI tools will “work as intended in all circumstances.”
A Target spokesperson confirmed that the policy change is related to the company’s upcoming integration with Google’s Gemini AI. A spokesperson said that even as the integration rolls out, products may still be eligible for returns and exchanges in stores and online.
Although AI agents cannot currently make purchases on behalf of targeted shoppers, retailers are introducing AI-powered tools designed to make shopping easier both online and in-store.
This policy change shows what online and in-app shopping will look like in the future and how important AI is for retailers.
“This is a big change in that it signals that the era of agent commerce is becoming a reality for many retailers,” Neil Saunders, managing director of retail at GlobalData, told Business Insider. “That being said, I don’t think Target expects this to be a big part of their sales yet. Agent commerce is still in its infancy.”
AI shopping is becoming a reality
Target, along with competing retailers, continues to roll out new AI-powered shopping experiences.
In November, Target launched a product recommendation tool powered by OpenAI’s ChatGPT. Then, earlier this year, the retailer announced a separate integration with Google’s Gemini.
Instead of opening Target’s app or website, shoppers can ask Gemini for recommendations, like what to buy for a workout, and proceed to checkout.
Because Gemini can connect to Target on your behalf rather than simply directing you to its own app or website, a company spokesperson said its terms need to be updated to reflect the possibility that a third party is involved in the transaction.
Amazon and Walmart have each deployed in-house AI assistants (Rufus and Sparky, respectively) built directly into their platforms. Walmart also has deals with the makers of ChatGPT, OpenAI, and Google Gemini.
Both retailers have updated their terms of service to take AI into consideration. Walmart said its AI could generate text with “errors or omissions” and warned shoppers that all purchases “must be reviewed and verified” before checking out. Amazon has emphasized safeguards and accuracy in its AI disclosures, rather than outlining users’ specific responsibilities for purchases.
Amazon did not respond to a question about whether it planned to add language similar to Target’s, saying instead that Walmart is “currently enabling our agents to purchase autonomously” and “remains focused on serving our customers directly.”
“The updated legal terms are noteworthy,” Sanders said. “I think these types of situations will become more common, and consumers will no longer be able to distance themselves from the agents they send to perform tasks such as purchases.”
Target technology push
The move comes as Target seeks to rebuild sales.
The Minneapolis-based retailer is coming off a volatile year. The company reported a 1.7% sales decline in fiscal 2025 as major competitors such as Walmart and Costco continue to grow sales.
Technology is one of the four pillars of Target CEO Michael Fidelke’s return plan, which also focuses on new merchandising, an upgraded shopping experience and stronger relationships with employees and the community.
Target’s technology team announced it is launching updates to get fresh products to stores faster, resolve customer app issues, and help merchandising teams get products on shelves.
Pratt Vemana, the company’s chief information and product officer, previously told Business Insider, “I don’t think there’s a better time for AI to come out, because there’s a need for it now.” “We have bold plans ahead of us.”