Kmart has followed Bunnings to introduce an AI shopping assistant for customers. · Source: Yahoo/Getty
Kmart is rolling out a new AI shopping assistant that it says will offer a new, more conversational way to shop online. The new assistant, called ‘Joy’, will allow customers to try on outfits virtually and see what items like a new couch or coffee table would look like in their own space.
It follows hot on the heels of Bunnings, also owned by parent company Wesfarmers, who introduced its own AI shopping tool last month and has already reported an uptick in conversions and basket sizes. Wesfarmers, who also owns brands like Officeworks and Priceline, struck multi-year partnerships with tech giants Google and Microsoft to embed AI across its businesses in February.
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‘Joy’ searches for products across Kmart’s online range, including items from Kmart, Target and Kmart’s marketplace.
Customers can narrow down their searches using everyday prompts like style, colour, occasion and budget, and can upload photos to get recommendations.
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‘Joy’ is available for customers on the Kmart website and will be rolling out in the Kmart app in June. · Source: Kmart Aussie retailers start rolling out AI shopping assistants
Bunnings became the first major retailer in Australia last month to launch an agentic shopping assistant, dubbed ‘Buddy’, using the same technology.
The hardware giant said early results show ‘Buddy’ had more than doubled conversion rates and was leading to higher-value baskets as customers shop for whole projects rather than individual items.
Woolworths has also flagged plans to incorporate agentic AI into its ‘Olive’ chatbot later this year through a partnership with Google.
Currently, the AI chatbot answers questions, resolves problems or directs shoppers to get more information. But soon, it will be able to plan meals, interpret handwritten recipes, apply loyalty discounts and put suggested items into online shopping baskets.
Coles, meanwhile, has a deal with OpenAI and said it is exploring how AI capabilities could reshape the shopping experience.
Bunnings launched its own AI shopping assistant, called ‘Buddy’, last month.
Shoppers are already turning to AI to help them find and purchase products, with tools like ChatGPT and Gemini acting as their own personal shopper.
According to Shopify data, AI-referred orders on its platform grew nearly 13 per cent year on year in the first quarter of 2026. Conversion rates were nearly 50 per cent higher, while average order values were 14 per cent higher.
But the AI chatbots, even in their basic forms, aren’t without controversy.
Woolies’ AI chatbot Olive sparked concerns after it went rogue and started talking to some customers about its “mother” when they were trying to arrange for a delivery.
Bunnings’ original 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.
Next phase of agentic commerce is coming
Payment giants Visa and Mastercard have started developing agentic payments technology, with Mastercard completing Australia’s first authenticated agentic transactions earlier this year using Commonwealth Bank and Westpac cards.
Visa has partnered with banks like NAB, ANZ and ING and says it is preparing the ecosystem for the next phase of agentic commerce where AI agents make decisions across merchants, categories and platforms, rather than within the one store.
Alan Machet, group country manager for Visa Oceania, said agentic commerce was more than technology and was a “fundamental shift in how people shop and pay”.
“Imagine an AI agent helping a family plan their weekly grocery shop across several supermarkets, balancing price, dietary needs, availability and delivery, then seamlessly completing the payment in one go,” Machet said.
“That is where we think agentic commerce will truly shine, and where the foundations of trust and security really matter.”
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