Target’s new AI policy delivers a blow to shoppers, revealing who pays when the bot goes completely off the rails

Target just dropped a pretty significant update to its terms and conditions, effectively putting shoppers on the hook for purchases made by AI agents they authorize, Business Insider reported. This move comes as the retailer gears up to integrate Google Gemini, an AI bot that could soon be helping you fill your digital cart. It’s a pretty big deal because it means if you let an AI shopping agent act on your behalf, those transactions are considered “authorized by you.”

Essentially, if the bot messes up and orders the wrong size shirt or a completely different item than you intended, you’re still responsible for the purchase. Target is being very clear that it doesn’t guarantee third-party AI tools will “act exactly as you intend in all circumstances.” While this might sound a bit harsh, a Target spokesperson confirmed that any products bought through these AI channels will still be eligible for returns or exchanges, following their standard return policy.

Right now, AI agents can’t just go wild and make purchases without your explicit approval. The plan is for the AI to suggest products and then complete the purchase only once you’ve given it the green light. Target has already been dabbling in AI-powered tools to make shopping smoother, both online and in stores. They launched a product recommendation tool with OpenAI’s ChatGPT back in November, and then announced the Google Gemini integration earlier this year.

Target’s partnership with Gemini is a game-changer, at least from the features they have promised

Instead of you opening the Target app or website, you could simply ask Gemini for recommendations—like what you need for a new workout routine—and then proceed directly to checkout. Because Gemini can connect to Target on your behalf, rather than just sending you to their platform, the company needed to update its terms to reflect that a third party might be involved in the transaction. This is a clear signal of how online and in-app shopping is evolving, making AI a super important piece of the retail puzzle.

Neil Saunders, the managing director of retail at GlobalData, pointed out that this is “a significant shift in that it signals the age of agentic commerce is becoming a reality for many retailers.” He doesn’t think Target expects this to be a massive chunk of their sales just yet, noting that agentic commerce is still in its early stages. But it’s definitely something we’ll be seeing more of.

Target isn’t alone in this AI push. Competitors like Amazon and Walmart have already rolled out their own in-house AI assistants, Rufus and Sparky, respectively, built right into their platforms. Walmart also has deals with OpenAI and Google Gemini, showing just how widespread this trend is. Both of these giants have also tweaked their terms and conditions to account for AI.

Walmart, for instance, warns that its AI might produce text with “errors and omissions” and tells shoppers they “should review and verify” all purchases. Amazon has focused more on safeguards and accuracy in its AI disclosures, rather than putting specific liability on users.

Saunders believes that “the updating of the legal terms is notable,” and he suspects these types of conditions will become far more common. It makes sense, as retailers want to ensure consumers can’t easily distance themselves from the actions of agents they choose to deploy for shopping tasks.

This whole tech push comes at a crucial time for Target. The Minneapolis-based retailer is working to turn around its sales after a shaky year, reporting a 1.7% decline in sales for its 2025 fiscal year, while rivals like Walmart and Costco saw growth. Technology is one of the four key pillars in CEO Michael Fiddelke’s comeback plan, alongside new merchandising, an upgraded shopping experience, and strengthening relationships with employees and the community.

Target’s chief information and product officer, Prat Vemana, put it perfectly, saying, “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.”