Case Study: How AI is Transforming Best Buy’s Customer Experience


Best Buy, a leading electronics retailer, has long been at the forefront of adapting to changing market dynamics. As digital technology becomes an integral part of industries, Best Buy has been proactive in leveraging AI, machine learning, and other technological advancements to enhance both customer and employee experiences. The company has recognized the potential of AI not only in improving sales and operational efficiencies but also in bringing back the human touch to human resources and customer interactions.

Key Takeaways

  • Best Buy’s investment in digital transformation, including AI, has significantly boosted its digital sales.
  • AI has enabled Best Buy to provide a seamless multichannel customer experience.
  • The company has effectively utilized AI in HR, streamlining administrative tasks to allow HR professionals to focus on personal interactions.
  • Generative AI has optimized the customer care process, enhancing efficiency and agent satisfaction.
  • Best Buy is piloting virtual reality training for in-home consultants and designers, aiming to improve sales skills and reduce training costs.

Deep Dive: How AI is Transforming Best Buy’s Customer Experience


Best Buy’s approach to AI is centered around enhancing the customer experience and operational efficiencies. The company believes in the power of AI to streamline processes, reduce costs, and drive growth. Brian Tilzer, the Chief Digital, Analytics, and Technology Officer, leads the digital transformation plans, emphasizing creating a seamless and superior multichannel customer experience.


One of the significant implementations of AI at Best Buy is the use of generative AI to summarize main points from customer calls, which reduces the time between calls and allows agents to focus entirely on the customer. Moreover, Best Buy is piloting a virtual reality training program for in-home consultants and designers, aiming to enhance their specialized selling skills. On the digital front, Best Buy is working on enhancing online user experiences, guiding customers to appropriate channels for bulk purchases, and employing digital methods to understand and target customers more effectively.


Best Buy’s investment in AI has shown promising results. Digital sales now account for 31% of domestic revenue, a figure that has doubled since the pre-pandemic era. AI has also positively impacted HR processes, freeing up HR professionals from administrative tasks and allowing them to focus on personal interactions. The AI-driven customer care process has not only lowered costs but has also boosted agent satisfaction.

Challenges and Barriers

While Best Buy has seen several successes with its AI initiatives, challenges persist. The main concern for top management is the decline in operating income as a percentage of revenue, indicating that the digital transformation plans have yet to fully enhance the company’s operating income. There’s also the challenge of ensuring that the implementation of AI and other technologies aligns with the company’s core values and does not compromise the human touch that remains essential in retail.

Future Outlook

Looking ahead, Best Buy is focused on expanding its digital capabilities to maintain a leading position in the evolving retail landscape. The company is on track with its store plans for the fiscal year 2024, emphasizing the importance of omnichannel capabilities. Best Buy’s membership program is expected to drive further engagement and revenue, with the company believing that active members will shift their tech purchases to Best Buy and engage across various categories more than non-members. The introduction of “My Best Buy Plus” indicates a continued emphasis on catering to diverse customer needs, pointing to a future where AI and digital technology remain central to Best Buy’s growth strategy.

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