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    Target Changes Its AI Strategy Due to Rising Technology Costs

    The company is looking at ramping up investment in its analytics teams in a bid ​to turn growing volumes ​of data ⁠into actionable insights at a faster clip.

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    Target Changes Its AI Strategy Due to Rising Technology Costs

    On May 25, 2026, in Bengaluru, Target India President Andrea Zimmerman told Reuters that while Target wants to put AI at the center of its business, unexpected price hikes from AI vendors are forcing a shift in strategy.

    Zimmerman informed Reuters about that significant ​investments are being made to ensure that the teams have the right ⁠tools for their jobs. She also said that Target focuses on the intentional use and integration of AI rather than deploying ​it everywhere.

    "It is forcing us to re-evaluate our strategy," Zimmerman said. Discussions around AI pricing are "at the highest ​level in both our architecture forums as well as in our senior ​leadership forums within technology," Zimmerman said.

    As per Reuters, OpenAI and Anthropic are increasingly ​shifting to token-based pricing that charges customers based on usage, instead of a ​subscription-based service, reflecting a broader reset in AI economics and raising costs for enterprises.

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    About the author

    Ridhika Basnet

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