Chewy eyes $50M in annual cost savings with AI
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The pet supplies retailer is deploying AI tools in customer care, pharmacy and vet services to bolster productivity as it sets its sights on agentic capabilities. Chewy is preparing for an agentic future, building infrastructure to support new capabilities as they're developed, in a bid to realize AI-driven cost savings. The retailer is not alone. Enterprises are set to more than double their spending on agentic and generative AI in 2026, according to Gartner data released earlier this year. Total global AI spend will grow by nearly $1 trillion. At Chewy, AI-enabled tools are transforming customer signals into intelligent insights, Singh told investors. Meanwhile, AI is also helping automate data extraction in pharmacy services. The company also launched an AI-powered voice assistant called Callie at some Chewy Vet Care locations to assist with confirming appointments and scheduling follow-ups. The company said AI initiatives contributed savings in the low tens of millions during the previous fiscal year. "As our automated facilities continue to scale and utilization improves, we are leveraging the fixed cost infrastructure embedded within the network while also reducing variable costs through automation, process improvements and AI-enabled tools," CFO Chris Deppe said during the earnings call. With an eye toward supporting agentic AI capabilities, Chewy spent several...
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