Instacart is turning a decade of grocery data into an artificial intelligence system that plans meals, builds shopping baskets, and predicts what shoppers forgot.
Instacart on May 6, 2026, announced the test launch of its "Cart Assistant," an AI-powered personal shopper that uses 10 years of user data to directly challenge competitors in the crowded online grocery market.
"We are increasingly using AI to make our experience more personalized and intuitive," Chief Executive Officer Chris Rogers said, highlighting upgrades in search, savings discovery, and AI-powered replacements.
The new conversational shopping tool is currently available to about 25 percent of U.S. customers and integrates with external platforms like ChatGPT and Claude. The move comes as the company, operating as Maplebear Inc. (NASDAQ:CART), reported first-quarter gross transaction value (GTV) grew 13 percent year-over-year to $10.29 billion.
The AI launch, coupled with a 14 percent rise in quarterly revenue to $1.02 billion, aims to deepen customer engagement and boost its high-margin advertising business, which saw revenue climb 16 percent to $286 million.
Financial Strength Supports AI Push
The company's strong financial performance provides a solid foundation for its new AI initiatives. Instacart reported first-quarter GAAP net income of $144 million and announced a $1 billion increase to its share buyback authorization, signaling confidence to investors. Cantor Fitzgerald subsequently raised its price target on the stock to $52 from $47, citing strong execution and strategic progress in a note to clients.
Enterprise and Ads Integration
The AI push extends beyond the consumer app. Instacart is embedding AI into its enterprise "Storefront Pro" solution for partners like ALDI and Costco, and its "Carrot Ads" network now exceeds 310 partners. Rogers noted that retailers upgrading to Storefront Pro see an average 10-percentage-point lift in online sales, creating a sticky business-to-business ecosystem that complements its consumer-facing marketplace.
A Crowded AI Shopping Landscape
While Instacart is using its vast data advantage, the move also reflects a broader industry trend where companies like Meta are developing their own AI shopping tools. By integrating with large language models, Instacart aims to be "wherever customers are," framing the strategy as an incremental demand channel rather than a risk of disintermediation. The company's ability to convert its decade of purchase data into a real-time shopping assistant will be critical in defending its market share.
This article is for informational purposes only and does not constitute investment advice.
