Friday, October 24, 2025

Revolutionizing Search: Target’s Next Steps with Generative AI

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The Future of Online Search: Target’s Journey into Generative Engine Optimization

Changing Search Behaviors

The evolution of customer behavior in online searching is a trend that cannot be ignored. As consumers increasingly adapt to new technologies, their search habits are morphing dramatically. At Shoptalk Fall 2025, Ranjeet Bhosale, the vice president of digital product management at Target, underscored this shift. He introduced the concept of GEO—Generative Engine Optimization—as a key development in how customers search for products.

While many shoppers still rely on traditional, straightforward search queries, a growing number are embracing more nuanced inquiries. For example, instead of typing in a simple request for a toy, a shopper might ask, “What’s a good gift for a nine-year-old?” This transition reflects a desire for more personalized, contextually relevant results.

Relevance in Retail

Bhosale emphasized that it’s no longer just about presenting the right products; it’s about the way those products are displayed. When customers search for items related to events like a summer party, they now expect retailers to unveil a broader range of relevant products. In Target’s case, this could mean presenting not only tableware but also grilled food, sunscreen, and other essentials in a cohesive manner.

This shift underscores the importance of contextual relevance in search results, which can significantly enhance the shopping experience. Retailers must adapt to these changing demands to stay competitive, ensuring that their offerings align with what consumers are increasingly seeking—holistic solutions rather than standalone products.

Preparing for Agent-to-Agent Interactions

As the landscape of online shopping evolves, Bhosale pointed out that retailers must prepare for a scenario where customers may not directly engage with their websites. Instead, they might rely on external shopping assistants that navigate Target’s offerings on their behalf. This necessitates a shift in how retailers train their customer service agents.

It’s crucial for these agents to understand and represent products effectively, whether they are communicating directly with a customer or engaging in interactions through third-party platforms. The integration of GEOs helps ensure that product representation is consistent and reliable across various touchpoints in a consumer’s journey.

Innovations in Personalized Recommendations

Target’s innovative approach is exemplified by the introduction of the Bullseye Gift Finder during the holiday season. This generative AI-driven tool provides personalized product recommendations based on several factors, including age, hobbies, and favorite brands. Bhosale reported significant user adoption of the tool, indicating that personalization resonates well with shoppers.

Looking ahead, Target plans to harness this capability for other seasonal occasions like Valentine’s Day and Mother’s Day. The use of AI to tailor shopping experiences can streamline the decision-making process for consumers while enhancing satisfaction.

Consumer Skepticism and AI

Despite the promising outlook for AI-driven shopping assistants, consumer skepticism remains a notable barrier to widespread acceptance. Research indicates that many users are hesitant to trust automated suggestions. However, Target’s findings suggest a willingness to embrace generative AI, especially when users can see the relevance and quality of the results.

Bhosale highlighted that trust is paramount; customers are seeking results they can depend on. As retailers continue to refine their algorithms and improve the contextual relevance of their AI tools, there is potential for increased consumer confidence and engagement.

Conclusion

As the retail landscape continues to change, the way customers search for and discover products is bound to evolve alongside. With innovations like generative engine optimization and personalized AI tools, retailers like Target are not just keeping pace with these changes but also leading the charge into a new era of online shopping. By prioritizing context, relevance, and consumer trust, they are setting the stage for a more intuitive future in digital retail.

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