Target Appoints Chandhu Nair as First Chief AI Officer in Major Push to Remake Shopping Experience

Target has appointed Chandhu Nair as its first chief AI officer, marking a strategic move as retailers bet on AI to transform shopping experiences and operational efficiency. Nair, who joins from Lowe's on August 24, will serve as senior vice president and chief AI officer, bringing a coordinated AI approach to the retail giant's technology initiatives1

1

2

2

.

From Lowe's to Target: A Strategic Leadership Move

Nair spent more than six years at Lowe's, most recently holding the title of senior vice president of stores, data, AI, and innovation3

3

. His career spans nine years at Staples and roles at Gap, along with founding two ventures: a data analytics software firm and a business strategy consulting startup4

4

. This diverse background positions him to drive practical AI applications across Target's operations.

AI Leadership Becomes Standard Practice

The chief AI officer role has rapidly evolved from novelty to necessity. IBM research reveals that 76% of organizations now have a chief AI officer in 2026, up dramatically from 26% in 20252

2

. Organizations with dedicated AI leadership report 5% higher returns on their AI spending, demonstrating the tangible value of coordinated AI approach. Target joins tech giants like Meta, Google, and IBM, as well as companies across industries including Eli Lilly, Pfizer, Accenture, and PwC in creating this position3

3

4

4

.

Frontline Operations Over Laboratory Experiments

"The most meaningful AI stories won't be about what happens in a lab," Nair stated. "They'll be about what happens on the front line—how we make shopping easier for a guest, give a team member a better tool, make a business decision with more confidence or bring a new idea to market faster"1

1

. This philosophy emphasizes practical AI applications that directly impact customers and employees rather than theoretical advancements.

Nair's priorities include improving inventory management, simplifying work for employees, and enabling faster decision-making2

2

. He plans to spend initial time with teams, experiencing the business through the eyes of guests, team members, and partners before deploying AI where it creates the biggest difference3

3

.

Target's Existing AI Initiatives Gain New Direction

Target has been investing in generative AI tools, including Target Trend Brain, which helps the retailer anticipate styles, colors, and materials customers will search for1

1

. Last holiday season, Target launched conversational AI to help customers find gifts1

1

. The retailer also promoted Purvi Shah to senior vice president of user experience, who assisted in launching a conversational shopping experience in ChatGPT eight months ago4

4

.

Target posted first-quarter net sales of $25.4 billion, a 6.7% increase from a year ago, and raised its full-year sales growth target to around 4%3

3

. As the company works to win back shoppers and investors, AI initiatives are becoming central to its strategy.

Retailers Scale Up AI Spending Amid Competitive Pressure

Target's appointment comes as retailers scale up AI spending to remain competitive. Walmart has been rolling out AI tools and agents across stores and supply chains to enhance customer experience and improve employee processes1

1

. Gap announced a partnership with Google's Gemini, while Best Buy has collaborations with both OpenAI and Google1

1

3

3

.

The urgency has reached executive leadership. Former Walmart CEO Douglas McMillon told CNBC in December that he handed over to someone "faster" who could tap into AI to accelerate the business, with John Furner taking over in February. McMillon explained that about a year ago, he started seeing what agentic commerce would look like and realized it was time for new leadership1

1

2

2

.

The Path Forward: Human-Centered AI at Scale

Target CEO Michael Fiddelke, who assumed his role in February, has identified technology as a top priority, emphasizing digital interactions that are "easier, more inspiring and welcoming" and technology that removes friction5

5

. The pairing of AI speed with human-centered design aims to remake the shopping experience for customers4

4

.

While North American retailers are still implementing AI tools, companies like Alibaba, Meituan, and JD.com are already deploying shopping agents at scale in China, replacing the search bar rather than merely enhancing it2

2

. This suggests the transformation toward agentic commerce may accelerate faster than many retailers anticipate, making coordinated AI leadership increasingly critical for competitive survival.