Lowe's pivots to 'AI-native' strategy to bridge home improvement knowledge gap

Lowe's is executing a comprehensive organizational shift to become an "AI-native" company. The retailer is integrating generative AI across its operations to fundamentally change how customers shop, how the company sells, and how its employees work.

As part of this transformation, Lowe's has launched "Mylow," a generative AI-powered virtual advisor designed to provide customers with real-time project advice and streamlined product searches. Internally, the company has deployed "Mylow Companion," an AI assistant that provides store associates with expert-level product knowledge and project guidance to improve customer service and accelerate employee onboarding. These initiatives are led by Chandhu Nair, SVP for Data, AI, & Innovation, and are supported by a dedicated AI Transformation Office and Innovation Labs.

The Digital Foundation

This pivot follows a massive digital transformation that began roughly seven years ago. By addressing significant technical debt and modernizing its data foundation, Lowe's is now positioned to integrate generative AI, traditional machine learning, and deep learning at scale. To manage the inherent risks of this transition, the company established an AI Governance Committee. This body, which includes representatives from Finance, Legal, and HR, is tasked with managing model, data, and brand risk.

Solving the Knowledge Gap

For a retailer operating over 1,700 stores, the primary challenge is the "knowledge gap." Home improvement requires specialized expertise, yet the industry often struggles with high frontline turnover. By democratizing expert knowledge through AI tools, Lowe's aims to maintain a high standard of advice regardless of an individual employee's tenure. This strategy is specifically designed to attract digitally native Millennial and Gen Z homeowners while simultaneously driving revenue within the Pro-segment.

Scaling for Growth

Financial scale provides the backdrop for these investments, with Lowe's reporting fiscal year 2025 sales exceeding $86 billion. However, leadership emphasizes that the technology is only one part of the equation. "If you think about AI efforts and use cases as 30% technology and 70% change management, the key to success is having the right business leader driving change management," Nair told Forbes.

What's Next

Lowe's intends to use this AI-native approach to drive growth over the next three to five years. The company will continue to refine its tools through a feedback loop between end-users and the Innovation Labs. The long-term success of the strategy depends on whether the integration of AI can effectively replace or augment the traditional expert-to-customer relationship in a physical retail environment.