Nordstrom’s AI Effort Is Focused on the Basics
The department store is focusing on procurement analytics and customer support before chasing bigger bets
At Manifest 2026 in Las Vegas, Nordstrom’s chief procurement officer described how artificial intelligence is being used inside the company’s sourcing systems.
“It spits out so much information that it would really take me hours to compile,” Karoline Dygas said during a panel discussion about procurement analytics. She was referring to the company’s spend intelligence platform.
Nordstrom uses procurement intelligence software from Suplari to analyze supplier spending and category data. According to Suplari’s published case study, the platform consolidates fragmented financial systems and provides cross-category visibility into supplier relationships. The case study describes the system delivering “actionable data and deep insights,” including identification of overly complex supplier relationships and single-sourcing risks.
Dygas also described interest in prescriptive AI systems.
“I want AI to tell me what I need to know. Right now, we're telling it what we need to know. That defeats the purpose.”
The procurement system aggregates spend patterns across categories and centralizes supplier data that previously required manual compilation, according to the Suplari case study.
AI in Nordstrom’s Supply Chain
Nordstrom’s third-quarter fiscal 2024 earnings release reported total net sales of $3.3 billion. Comparable sales increased 4.0%, digital sales grew 6.4%, and digital represented approximately 34% of total sales. Ending inventory increased 5.9% compared with the same period the prior year.
In the fourth quarter of fiscal 2024, the company reported a 4.7% increase in comparable sales. Digital sales represented 38% of total sales for the quarter, and the company reported gross margin expansion compared with the prior year period.
Procurement systems operate inside this broader financial structure. According to the Suplari case study, Nordstrom’s analytics platform unified previously fragmented financial data and provided consolidated visibility across categories and suppliers.
How AI Shows Up for Shoppers
Nordstrom has also piloted AI use in customer service. Reporting from industry outlets described a program that used AI to provide more accurate delivery time estimates. Delivery status was identified as one of the most common reasons customers contact support.
Heather Bissell, senior director of customer care, said at a retail conference, “The biggest thing for us is really about the human connection.” She also said, “If you contact Nordstrom, we don't have an IVR… That is very intentional because we are very much a personal connection service company.”
Conference coverage noted that frontline employees were involved in shaping how AI tools integrate into service workflows. The AI system handles routine delivery inquiries, while customer care agents address more complex issues.
Nordstrom has incorporated generative AI features into its mobile app. According to Marketing Dive, the refreshed app introduced “Style Swipes,” a recommendation tool that adapts based on user interaction. The update also included AI-powered trend reports that blend stylist input with generative AI to surface personalized insights.
Digital channels accounted for more than one-third of total sales in recent quarters, according to Nordstrom’s earnings releases.
Other retailers have outlined broader AI initiatives. Walmart partnered with OpenAI to enable customers to shop through ChatGPT using an “Instant Checkout” feature. Target has deployed machine-learning systems to forecast demand and reduce stockouts across its inventory network. Macy's previously tested an AI assistant designed to help shoppers locate products in stores.
Nordstrom’s documented AI deployments include procurement analytics, service workflow automation, and app-level personalization. The systems described in reporting and company materials consolidate supplier data, automate routine service responses, and surface personalized product recommendations within the company’s existing commerce platform.