Target has updated its terms and conditions to explicitly state that purchases made by an authorised AI shopping agent will be considered transactions authorised by the customer. The policy change, effective from 22 March, precedes the launch of a new integration with Google's Gemini artificial intelligence.
The Minneapolis-based retailer confirmed the update is directly tied to the forthcoming partnership, which will allow the AI to suggest products and initiate checkout on a shopper's behalf. A company spokesperson emphasised that the AI agent cannot complete purchases without the customer's final approval.
New Era of 'Agentic Commerce'
The revised terms state: "If you authorise an AI shopping agent to act on your behalf... those purchases and transactions would be considered transactions authorised by you." This legally binds customers to pay for items, even if the AI orders incorrectly. Target does not guarantee that third-party AI tools "will act exactly as you intend in all circumstances."
Neil Saunders, Managing Director of Retail at GlobalData, told Business Insider this marks a "significant shift" signalling the arrival of "agentic commerce" for retailers. "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," Saunders said.
Competitive AI Rollout Amid Sales Slump
Target is among several major retailers aggressively deploying AI shopping tools. In November, it launched a product recommendation feature using OpenAI's ChatGPT. Earlier this year, it announced the separate integration with Google Gemini, enabling users to ask the AI for recommendations—like workout gear—and proceed to checkout without opening Target's app.
The move comes as Target attempts to reverse a 1.7% decline in sales reported for its 2025 fiscal year, while competitors like Walmart and Costco saw growth. Technology is one of four pillars in CEO Michael Fiddelke's turnaround plan, alongside new merchandising, an upgraded shopping experience, and strengthened community relations.
Industry-Wide Legal Adjustments
Other retailers have also updated policies for AI commerce. Walmart's terms warn its AI may produce "errors and omissions" and advises shoppers to "review and verify" all purchases. Amazon has focused its disclosures on AI safeguards and accuracy rather than specific user liability. When asked about matching Target's language, Walmart stated it does "not currently allow agents to autonomously make purchases," while Amazon did not respond.
Prat Vemana, Target's Chief Information and Product Officer, previously told Business Insider: "I couldn't have asked for a better time for AI to show up, because now we have a need. We have a bold agenda ahead of us." The company's tech team is prioritising updates to accelerate product delivery, fix app issues, and improve shelf stocking.
The spokesperson confirmed that items purchased via the AI integration will remain eligible for standard in-store and online returns and exchanges once the feature launches.