Bunnings Launches AI-Powered Shopping Assistant
Hardware giant Bunnings is set to become the first major retailer in Australia to introduce an agentic shopping assistant for its customers. Starting this week, Bunnings will roll out a new tool called ‘Buddy’, which it claims will mark a “new generation of AI-powered shopping”.
Buddy is described as a “helpful team member online” that will guide customers through various projects, answer complex questions, and assist them in finding what they need. Customers can type or take a photo of a handwritten list, and Buddy will quickly identify the items and add them to their cart.
Bunnings confirmed that while Buddy can add items to the cart, customers will still need to approve or remove any pending items based on their preferences.
Supporting Evolving Customer Behaviors
Bunnings managing director Mike Schneider emphasized that the introduction of Buddy supports evolving customer behaviors and team interactions. He stated:
“Our customers come to Bunnings with projects big and small, and Buddy is designed to help make those projects easier to plan and get started. This is about embracing and using AI in a practical, responsible way to complement the advice and service our team provides every day, while giving customers more options that suit how they want to interact with us.”
Parent Company Partnerships
Parent company Wesfarmers, which also owns brands like Kmart and Priceline, announced in February that it had formed multi-year partnerships with Microsoft and Google to integrate AI services across its businesses. Bunnings will be the first Australian retailer to launch a shopping agent using Google Cloud’s Gemini Enterprise for Customer Experience technology, and one of the first globally.
Paul Migliorini, Vice President of Google Cloud Australia and New Zealand, highlighted the power of AI when it solves everyday problems. He said:
“We’re combining the best of our AI and infrastructure with Bunnings’ deep product expertise to create a true expert helper that meets customers right where they are — whether they type or share an image—making it easier to get started on projects.”
Familiar Experience with New Technology
Bunnings has assured customers that while it marks a new generation of shopping, the experience will feel familiar. Buddy will draw on the retailer’s existing content library and the expertise of team members.
The tool will be rolled out on the Bunnings website this week, replacing the current Ask Bunnings AI tool with broader access over the coming weeks.
Other Retailers Explore AI Integration
Some of Australia’s biggest companies have announced plans to introduce agentic shopping assistants, but Bunnings will be the first to do so at scale for customers.
Woolworths has partnered with Google to incorporate agentic AI into its ‘Olive’ chatbot, which is expected to start in Australia later this year. Currently, the AI chatbot mostly answers questions, resolves problems, or directs shoppers to get more information. Soon, it will be able to plan meals, interpret handwritten recipes, apply loyalty discounts, and put suggested items into online shopping baskets.
Coles announced a deal with OpenAI, owner of ChatGPT, last year with a plan to roll out AI tools across its internal corporate workforce early this year. It also flagged plans to see how the AI could reshape shopping experiences.
Controversies and Challenges
Woolies’ AI chatbot Olive sparked controversy recently after it went rogue and started talking to some customers about its “mother” when they were trying to arrange for a delivery.
Bunnings’ AI chatbot, Ask Bunnings AI, also came under fire last year after it gave a customer illegal electrical advice on how to rewire an extension cord.
Agentic Payments Technology
It comes as payment giants Visa and Mastercard roll out agentic payments technology, Agent Pay and Intelligent Commerce. Mastercard completed Australia’s first authenticated agentic transactions earlier this year.
Research from PayPal last year found 78 per cent of people expected AI assistants would become a mainstream part of online shopping.
Unlike generative AI, which responds to prompts or commands, agentic AI acts as an autonomous agent and can accomplish specific goals.
