Target is intensifying its adoption of artificial intelligence (AI) while reassessing its deployment strategy due to changes in pricing models from technology providers, according to India head Andrea Zimmerman. She emphasized that the company is transitioning from merely “using AI” to “running on AI,” amidst significant investments to equip teams with the necessary tools. This shift comes as firms like Anthropic and OpenAI are adopting token-based pricing that charges based on usage rather than fixed subscriptions, prompting Target to engage in high-level discussions about AI pricing and deployment within its technology forums. Additionally, the retailer is focusing on bolstering its analytics teams to better leverage growing data volumes for actionable insights, especially as it navigates three consecutive years of declining revenue amidst changing consumer behavior.
Target: Target is a major U.S. retailer headquartered in Minneapolis that operates physical stores and digital channels offering consumer goods. The company is advancing from initial AI experimentation to embedding the technology more deeply into its core operations while reassessing deployment approaches. Its India center supports key verticals including merchandising, digital, stores, and supply chain.
Andrea Zimmerman: Andrea Zimmerman is President of Target India, overseeing the Bengaluru-based global center and related technology functions. She has emphasized intentional AI integration and the need to equip teams with appropriate tools amid shifts in provider pricing models. Zimmerman participates in senior-level discussions on AI strategy within the company’s architecture and technology forums.
AI Pricing Trends: AI providers including Anthropic and OpenAI are moving toward token-based usage pricing instead of subscription models, prompting enterprises to reevaluate their AI strategies.
Leadership Discussions: AI pricing and deployment decisions are being elevated to the highest levels in both technical architecture forums and senior leadership technology discussions at major retailers.
Retail Analytics Focus: Retailers are increasing investments in analytics teams to transform growing volumes of data into actionable insights more quickly.