How Home Depot is rebuilding retailing with AI

Home Depot is aggressively integrating artificial intelligence across its operations to enhance customer experience and streamline internal workflows. Led by a new slate of technology executives, the retailer is deploying tools like the Magic Apron assistant and "order intelligence" systems to optimize everything from product discovery to complex delivery logistics. These investments are specifically designed to bolster the company’s interconnected retail ecosystem and better serve high-spending professional contractors amid a challenging housing market.

Home Depot has assembled a high-level technology leadership team to drive its AI transformation, including CTO Fran Bell, CIO Angie Brown, and EVP Jordan Broggi, who oversees the company’s $25 billion e-commerce business. The company’s strategy focuses on three pillars: enhancing in-store merchandising, building an interconnected digital ecosystem, and increasing engagement with professional contractors and builders who represent a high-value segment. Despite economic headwinds like high interest rates and rising material costs that have slowed larger home projects, Home Depot reported a 4.8% increase in net sales for the fiscal first quarter. CIO Angie Brown emphasized that the company will not limit AI use cases, opting instead to apply the technology wherever it can solve identified business problems.

Key AI deployments include the "Magic Apron" assistant, which debuted in March 2025 to answer shopper questions and summarize product reviews. While initially popular with DIY consumers, the system is currently being fine-tuned after professional contractors found its responses too simplistic for their specialized needs. Additionally, a voice-based customer service system developed with Google Cloud has demonstrated the ability to identify caller needs within 10 seconds during a 50-store pilot. Internally, the retailer is utilizing Microsoft Copilot for office tasks and Anthropic’s Claude for software development, while machine learning algorithms help store associates manage workflows more efficiently.

Beyond the storefront, Home Depot is utilizing "order intelligence" to analyze millions of historical data points to predict delivery risks and improve logistics. This system assesses property-specific challenges, such as narrow paths or gate codes, to determine whether a 22-foot or 36-foot truck is required, thereby improving delivery accuracy and communication. The company is also exploring Generative Engine Optimization (GEO) to ensure its products appear in results on platforms like ChatGPT and Google Gemini. As the retail landscape shifts toward agentic commerce, Home Depot is supporting protocols like Google’s Universal Commerce Protocol to maintain its competitive edge in the home improvement sector.