Home Depot takes its next step into AI. What it means for you.

Vinings-based Home Depot is among the retailers embracing this transformation — the next evolution of shopping called agentic commerce.

At the National Retail Federation conference on Jan. 11, the home improvement giant announced an expanded deal with Google Cloud to launch new agentic AI tools.

The new capabilities are aimed at providing real-time home improvement assistance to do-it-yourselfers and professional contractors.

Home Depot also said it will participate in agentic shopping experiences across Google’s AI mode and Google Gemini in coming months, according to the announcement.

Other big retailers such as Walmart are integrating with Google Gemini and OpenAI’s ChatGPT, including for “instant checkout” shopping features within AI.

“We are entering a new chapter of retail where technology doesn’t just suggest products — it solves problems,” Jose Gomes, vice president of retail and consumer packaged goods at Google Cloud, said in the announcement. “The Home Depot is leading in the agentic commerce era, and using AI to deliver real-world value.”

A new study from IBM and NRF says about 45% of surveyed consumers are now using AI on their buying journeys, whether that’s to research products, interpret reviews or find deals.

Critics of the technology raise risks such as privacy issues, algorithmic bias and job displacement.

Magic Apron

Home Depot said it is expanding its AI assistant Magic Apron, which answers questions about products and how to get projects done on its website and app

Beyond just describing their project in words, customers will soon be able to upload photos and get advice. And Magic Apron is integrating with Home Depot’s inventory to direct customers to products in the physical stores. A nationwide launch is planned in the coming months.

For example, if a customer asks which grout works best with glass tiles, Magic Apron will provide how-to guides and recommend materials, Home Depot said. Then, the AI tool will show the customer where exactly to find those products in the store.

Home Depot also touted its new AI-powered tool for professional contractors, which generates material lists and project quotes. The company said it is using AI to enhance delivery and customer service as well.

“All of our initiatives are leading to more habitual spending and growth in our online business,” Jordan Broggi, Home Depot’s executive vice president of customer experience and president of online, said at the company’s investor and analyst conference in December.

Home Depot’s online business already generates sales of about $25 billion, he said.

“Our goal is to be the best interconnected experience in all of retail,” Broggi later said at the conference.

Investing in AI

A Home Depot spokesperson declined to say how much the company was investing in the AI technology. However, Home Depot in 2022 announced a $150 million venture capital fund to help fuel such innovation.

It’s not clear if or how jobs may be impacted.

When asked about potential implications on the workforce, a company spokesperson referenced Gemini Enterprise, which is being used by corporate employees at the Cobb County headquarters. A Home Depot executive last fall said about 18,000 associates are based there.

Gemini Enterprise is an agentic platform that automates business processes. Home Depot said teams are using it to predict project bottlenecks, draft marketing copy and audit digital designs.

“We are giving our teams world-class AI tools to allow them to spend more of their time on what matters most: providing the expert, human-to-human problem solving to best serve our customers,” the spokesperson said when asked if the AI tools would impact jobs.

Home Depot has partnered with Google Cloud since 2015 on a host of tech advancements.

On Jan. 11, coinciding with the NRF conference, Google Cloud in a blog post declared “a new era of agentic commerce is here,” highlighting its deals with companies including Home Depot, Gap, Honeywell and The Estée Lauder Cos.