With over $109 billion in annual revenue, Target operates nearly 2,000 stores across the country, offering a wide range of products including apparel, electronics, home goods, and groceries. The company is known for its focus on creating a convenient and seamless shopping experience, both in-store and online, for millions of customers. Brett Craig, the Executive Vice President and Chief Information Officer of Target, has played a crucial role in shaping the technology strategy of one of the largest retailers in the United States. In his role, Craig leads Target’s enterprise technology systems, overseeing product engineering, cybersecurity, data sciences, and more.
The Role of Technology in Target’s Future
Craig noted that technology used to focus on “automating the easy,” and it now plays a defining role in how Target interacts with its guests and team members. “Technology is pervasive in everything we do,” Craig said, underscoring how important it has become to the overall consumer experience. Whether it’s streamlining operations or enhancing customer interactions, Target relies on technology to create efficiencies and drive innovation.
One of the key shifts, Craig explained, is in how technology supports the human-technology interface. As consumers increasingly engage with Target through digital means, Craig and his team focus on making these interactions more seamless and enjoyable. For example, technology helps Target employees deliver better service, empowering them to be more effective in their roles. Craig stated, “It’s how we empower our team to be the best they can possibly be in service of our business and our guests.”
Fostering a Culture of Innovation
Craig’s passion for innovation permeates Target’s technological culture. He underscored the importance of continuous learning, curiosity and experimentation. “A good idea can come from anywhere,” he noted, highlighting that innovation at Target is not limited to the technology department but is a company-wide mindset.
One of the unique programs Target has implemented to cultivate this culture is the quarterly Demo Days. These events are a platform for Target’s technologists to showcase their work, often in the form of new ideas or progressing projects. “It’s a celebration of learning,” Craig highlighted, explaining how demo days foster cross-functional collaboration and engagement across different teams. The presence of leaders and representatives from all business functions ensures that technological innovation is visible, appreciated and understood throughout the organization.
Beyond demo days, hackathons and the “50 Days of Learning” initiative allow technologists to explore personal and professional ideas. Craig shares an example of how teams might collaborate in unconventional spaces like garages or basements to develop solutions that may eventually be presented at Demo Days or implemented in production. Even if the results are not directly implemented, the knowledge gained is invaluable. When asked about critical charactertics that he believes drive his team’s innovation, he emphasized that having a mindset of curiosity and continuous learning is crucial especially as the pace of change in retail and technology accelerates.
AI and Generative AI as Strategic Enablers
Target’s exploration of artificial intelligence is not a new endeavor. The company has been leveraging AI models for over a decade, applying them across its operations to improve efficiency, personalize customer experiences and optimize media for advertisers. Craig pointed to Target Circle 360, which uses AI to deliver more relevant offers to customers, as an example of how traditional AI is already providing significant business value.
However, the advent of generative AI has opened new doors for Target. Craig is particularly excited about the potential for generative AI to enhance customer interactions by creating more conversational, human-like experiences. “It has so much potential to continue to advance the way people and machines interact,” he underscored. Target is already experimenting with generative AI in several areas, including digital surfaces and search functions, with plans to expand its use to empower employees and improve customer service.
The key to Target’s success with AI is the company’s investment in its data foundation and architecture. “We invested heavily in building a data foundation and a reliable architecture for our retail platform,” Craig said, highlighting that these critical elements enable Target to deploy AI effectively. This foundational work allows the company to quickly experiment with new AI technologies and move them into production when appropriate.
Balancing Innovation and Responsibility
Despite the rapid advancements in AI, Craig stresses the importance of balancing innovation with responsibility. Target has been working with AI long enough to establish strong policies, practices, and oversight to ensure that its use of AI is ethical and responsible. This, Craig believes, creates a “healthy tension” between the desire to experiment and the need for caution. “That healthy tension exists because we have policies, and practices, and oversight to ensure that we’re responsible and ethical,” Craig explained.
This foundation of governance, security and hygiene, Craig is essential for fully leveraging the benefits of emerging technologies like generative AI. By adhering to these standards, Target ensures that its AI initiatives align with the company’s broader strategic priorities while honoring its commitments to team members, customers, and investors.
Craig’s vision for the future of Target is one where technology not only supports the company’s operations but also drives innovation and enhances the human experience. Through a culture of continuous learning and experimentation, programs like demo days and the “50 Days of Learning,” and a strategic approach to AI, Target is positioning itself at the forefront of retail technology. Craig’s emphasis on balancing innovation with responsibility further demonstrates Target’s commitment to ethical and sustainable growth, ensuring that its technological advancements benefit all stakeholders involved.
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.