Kroger bases AI strategy on customer data, helping shoppers & associates
The Kroger Co. sees artificial intelligence as a data-driven tool to streamline shopping while making associates more efficient.
The grocery giant outlined its AI strategy at the GroceryShop 2026 conference in Las Vegas. According to Kroger, its AI initiatives are supported by privacy, security and AI governance processes designed to help ensure appropriate use of data and human oversight.
Yael Cosset, executive VP and chief digital officer of Kroger, reviewed four key aspects of the grocer’s approach to AI:
Data foundation
According to Cosset, Kroger's AI strategy is supported by a data foundation built on its loyalty program and years of customer and operational insights and data science. The company’s portfolio of proprietary AI models includes components for demand forecasting, operational optimization, personalization, and generative AI.
Kroger combines its proprietary AI models with third-party next-generation AI models using a shared infrastructure that includes data, services, agentic capabilities and governance guardrails. The company views this format as helping enable it to move faster on proven capabilities, better orchestrate agents across workflows and manage performance in a more disciplined, reliable manner.
A leveled approach
Cosset described Kroger's AI strategy as consisting of three stages: assisted, augmented, and autonomous.
"The goal is not autonomy everywhere," said Cosset. "The goal is using the right level of AI based on risk, repeatability and the need for human judgement. Different cases will sit at different stages, and strong governance remains at the center."
Helping customers and associates
As part of its efforts to help customers shop, Kroger recently released an AI shopping assistant that supports customers with tasks such as planning meals for the week, finding new recipes, and building a cart around budget and dietary needs as well as preferences. The assistant has agentic conversational search capabilities.
[READ MORE: Kroger debuts AI shopping assistant]
Cosset said Kroger is also working on improving agents for frontline workers to surface only the most important information from a large volume of daily notifications. The grocer is making AI literacy training and tools available to more than 400,000 associates across the enterprise.
"It's about more than simply granting access," said Cosset. "Teams need the skills and discernment to use AI responsibly, understanding where it is useful and redesign work around this new capability. At our core, the human connection to a customer or fellow associate will never be replaced by AI. Instead, AI will give our associates more time and insight to create that connection."
Future plans: Grocery as a managed service
Cosset outlined plans for a future in which grocery shopping becomes an outcome-based experience instead of a series of individual, functional transactions. In this model, customers may choose to share information relevant to their shopping needs and AI agents handle planning, shopping and fulfillment.
Rather than formulating a weekly shopping list, with this model customers might choose to share their goals and preferences, allowing AI agents to assist with planning and completing their shopping.
Cosset said Kroger has the advantage of a deep knowledge of customer shopping patterns and visibility into product availability and fulfillment to help make the customer experience better in this agentic-focused scenario.
"This isn't new for Kroger," said Cosset. "We've long been using data science and artificial intelligence to serve our customers by precisely forecasting demand, connecting customers with the most relevant savings opportunities and helping them find and get the products they need. Our latest investments in AI allow us to connect relevant business and operational signals to make decisions and take action faster."
Based in Cincinnati, The Kroger Co. operates approximately 2,800 stores under a variety of banners across the U.S., including Kroger, Fred Meyer, Ralphs, Dillons, Smith's, King Soopers, Fry's, QFC, City Market, Owen's, Jay C, Pay Less, Baker's, Gerbes, Harris Teeter, Pick 'n Save, Metro Market and Mariano's.
