KRThe Kroger Co.
AI adoption · Q4 2025 earnings call
Consumer StaplesPiloting
6
extracted from this call
3 / 5
operational, no hard numbers
Not disclosed
no breakout in this call
Kroger management discussed AI as a meaningful strategic priority on this call, highlighted by the appointment of a newly created C-suite-level AI leadership role (Milen Mahadevan, formerly President of 84.51°). Key use cases cited include shrink reduction, labor scheduling, and an Agentic AI shopping assistant being piloted in select divisions with plans for full rollout. Management acknowledged being in early stages and declined to provide specific quantitative targets for AI's financial impact despite a direct analyst question.
Adopter
See full leaderboard →33/ 100
51
stage: piloting · max spec: 3
0
no quantified disclosure
65
2 scopes
product_embeddedinternal_use
6 AI mentions from this call.
Extracted verbatim from the KR Q4 2025 earnings call transcript. Speaker, section, and specificity tier surfaced for each mention.
- T3Q&A· CFO· Product-embedded AIyou have a newly created AI role. Can you maybe for Kroger as a whole, just talk about maybe the talk through 2 to 3 specific quantifiable targets for AI's impact on the customer experience and productivity that you would expect to achieve in the next 12 to 24 months?
“like many other companies, we're at the early stages. We've made some good progress, but we've got a lot more to do. And I think we've got already some emerging good proof points of the work that we're doing. I think if you look at areas like operations, some of the shrink results that you've been seeing from us are driven by technology and AI. And that's an area where I'd expect us to continue to invest. In the people space, we've got some really good tools that are improving the employee experience, helping us manage labor better, help us schedule labor better. And I think, of course, there's then Agentic shopping. We've got our own digital shopping assistant live in a couple of divisions. That's on the Kroger platform, and we'll expand that later this year to all divisions. We've obviously announced the partnership with Google.”
— David John Kennerley, KR earnings callGoogleAgentic shopping, digital shopping assistant - T3Prepared remarks· CFO· Product-embedded AI
“Beyond new stores, our capital investments will support technology and AI, where we are investing aggressively. These investments serve 2 purposes: improving the customer experience and driving productivity throughout the company. This year, we're introducing Agentic AI shopping for our customers, which will help them discover items, build baskets, plan meals and stay within budgets, all in a personalized way.”
— David John Kennerley, KR earnings callAgentic AI shopping - T3Prepared remarks· Other· Product-embedded AI
“We see AI as a meaningful opportunity to both improve the customer experience and drive productivity across our business. We're already seeing results from more competitive pricing, improved shrink to faster fulfillment and tools that help our associates work more efficiently. As we move forward, we plan to expand these capabilities, including Agentic shopping on our digital properties.”
— Ronald Sargent, KR earnings callAgentic shopping - T2Q&A· CEO· Product-embedded AIwhat do you think will be the hallmark of Kroger that allows you not just to compete, but actually to win on unit volume longer term?
“having spent a bit of time down at 84.51° and seeing what we can do there and the caliber of the people, I like the fact that we can be pretty personal. And as you think about digital and where that's going, and we had the question previously on AI. I like the fact that we can be for you. We can deliver things for customers, that are specific to those customers.”
— Gregory Foran, KR earnings call - T2Prepared remarks· Other· Internal use
“This week, we also elevated Milen Mahadevan for a newly created role to lead artificial intelligence work across the company, reinforcing the priority that we're placing on AI. Milen most recently served as President of 84.51°.”
— Ronald Sargent, KR earnings call - T2Q&A· Other· Product-embedded AIany drivers to that beyond DoorDash and Uber Eats? I mean, are there other things that you guys are looking at, new strategies in either delivery or things that you're not doing?
“whether that's a lot of initiatives around AI and Agentic shopping. In-stock is a big focus, delivery service. So all of those things, those nuts and bolts things are really important to the growth of e-commerce this quarter.”
— Ronald Sargent, KR earnings callAgentic shopping
What management wouldn’t quantify.
Analyst questions where management declined to share a specific number. The pattern of refusals is often as informative as the disclosures.
- Declined to provide specific quantitative targets for AI's impact on customer experience or productivity over the next 12-24 months despite a direct analyst question from Krisztina Katai (Deutsche Bank). CFO David Kennerley acknowledged being 'at the early stages' and offered only qualitative proof points.
- No dollar amount disclosed for AI-specific capital investment, despite CFO stating the company is 'investing aggressively' in technology and AI within the $3.8B-$4.0B CapEx envelope.
- No user count, adoption rate, or financial impact metric disclosed for the Agentic AI shopping assistant pilot.
- No quantification of shrink reduction attributable to AI vs. other operational improvements.
- Google partnership mentioned but no terms, scope, or financial commitment disclosed.
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