Your Target run could soon be handled by AI — and the retailer wants shoppers to know they’ll be on the hook for those purchases.
Target updated its terms and conditions on March 22 as it prepares to launch a partnership with AI bot Google Gemini. The integration could enable the AI to suggest products and complete purchases on a shopper’s behalf. The agent would not be able to buy products without the shopper’s approval.
The new terms and conditions say that if a customer authorizes an AI shopping agent to act on their behalf, those purchases and transactions would be “considered transactions authorized by you.”
In other words, the customer would still have to pay, even if, let’s say, the bot ordered the wrong item.
The policy also notes that Target does not guarantee that third-party AI tools “will act exactly as you intend in all circumstances.”
A Target spokesperson confirmed that the policy change is tied to the coming integration with Google’s Gemini AI. When that integration is rolled out, the spokesperson said products may still be eligible for in-store and online returns and exchanges.
AI agents cannot currently make purchases on a Target shopper’s behalf, though the retailer has introduced AI-powered tools designed to make shopping easier both online and in stores.
The policy changes signal how online and in-app shopping could look in the future — and how important AI is to retailers.
“This is a significant shift in that it signals the age of agentic commerce is becoming a reality for many retailers,” Neil Saunders, the managing director of retail at GlobalData, told Business Insider. “That said, I don’t think Target is expecting this to be a huge piece of their sales pie just yet — agentic commerce is still at a very embryonic stage.”
AI shopping is becoming a reality
Target — along with its competing retailers — continues to roll out new AI-powered shopping experiences.
In November, Target launched a product recommendation tool with 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 could ask Gemini for recommendations — like what to buy for a workout — and then proceed to checkout.
Because Gemini can connect to Target on a user’s behalf, rather than simply directing them to its app or website, the company spokesperson said it needed to update its terms to reflect that a third party may be involved in the transaction.
Amazon and Walmart have each rolled out in-house AI assistants — Rufus and Sparky, respectively — built directly into their platforms. Walmart also has deals with the maker of ChatGPT, OpenAI, and Google Gemini.
Both retailers have also updated their terms and conditions to account for AI. Walmart says its AI may produce text that contains “errors and omissions,” and warns shoppers they “should review and verify” all purchases before hitting checkout. Amazon has emphasized safeguards and accuracy in its AI disclosures, rather than outlining specific user liability for purchases.
Asked whether they plan to add similar language as Target, Amazon did not respond, and Walmart said it does “currently allow agents to autonomously make purchases” and “remains focused on serving our customers directly.”
“The updating of the legal terms is notable,” Saunders said. “I suspect these types of conditions will become far more common so that consumers cannot distance themselves from agents they deploy to do tasks such as buying.”
Target’s tech push
The move comes as Target is attempting to turn around its sales.
The Minneapolis-based retailer is coming off a shaky year. It reported a 1.7% decline in sales for its 2025 fiscal year, while big-box competitors like Walmart and Costco continued to grow sales.
Tech is one of the four pillars of Target CEO Michael Fiddelke’s comeback plan, which also emphasises new merchandising, an upgraded shopping experience, and strengthening relationships with employees and the community.
Target’s tech team has said it’s launching updates to help bring fresh products to stores faster, fix issues in the customer app, and help merchandising teams get products on shelves.
“I couldn’t have asked for a better time for AI to show up, because now we have a need,” Prat Vemana, the company’s chief information and product officer, previously told Business Insider. “We have a bold agenda ahead of us.”
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