Why This Matters to Distributors: Lowe’s is moving AI deeper into the customer buying process and has begun putting measurable results behind the investment. Online shoppers who use its Mylow AI agent convert at three times the rate of those who do not, while new AI tools are helping contractors turn job-site notes and files into product quotes. The developments put AI directly into areas where distributors have traditionally competed through product expertise, quoting and customer service.
Lowe’s is moving artificial intelligence from customer assistance into sales, with its Mylow AI agent now handling millions of questions and users converting at three times the rate of other online shoppers.
The home improvement retailer said Mylow, and its related associate AI application have handled more than 25 million questions since their introduction, giving Lowe’s one of its clearest measures yet of how AI is affecting customer behavior.
CEO Marvin Ellison said during the company’s Aug. 19 second-quarter earnings call that customers are using Mylow for help with home improvement projects, product specifications and product selection.
More important for Lowe’s, those conversations are increasingly leading to purchases.
Customers who engage with Mylow while shopping online convert at three times the rate of customers who do not use the AI agent, Ellison said.
The results come as Lowe’s online business continues to outpace the company’s overall growth. Online sales increased 15.7% in the second quarter, while total sales increased 8.3% to about $26 billion. Comparable sales increased 0.2%.
Lowe’s does not attribute the online increase solely to AI. Ellison said higher traffic and conversion were also supported by improvements to the company’s digital experience, expanded visualization capabilities, free and same-day delivery and its growing online marketplace.
But the conversion rate among Mylow users gives Lowe’s a direct link between use of its AI technology and purchasing behavior.
“We have roughly 25 million questions since its inception,” Ellison told analysts. Customers using Mylow, he said, “convert at 3 times greater than customers that don’t.”
AI Moves Deeper into the Pro Business
Lowe’s is also extending AI into the purchasing process for professional contractors, an increasingly important customer group as the company expands its Pro business.
In May, Lowe’s introduced Material Lists, an AI-powered tool designed to turn handwritten notes, photographs, spreadsheets and other project files into product lists that can be used to prepare quotes.
The tool is aimed particularly at small and midsize contractors who often handle estimating, purchasing and administrative work themselves.
That puts AI into a part of the transaction traditionally dependent on sales representatives and Pro desks: taking a contractor’s job requirements, identifying the necessary products and converting that information into a quote.
Technology is part of a broader expansion of Lowe’s digital Pro capabilities.
Company executives said its Pro tools allow contractors to plan projects, obtain quotes, manage purchases and operate more of their businesses through Lowe’s digital platform.
The effort also comes as Lowe’s increases its exposure to larger professional customers through Foundation Building Materials and Artisan Design Group. Lowe’s said the acquisitions are intended to help it capture more planned Pro spending and expand its share among larger contractors.
Lowe’s Puts AI in Employees’ Hands
AI is also becoming part of the way Lowe’s employees serve customers inside stores.
Mylow Companion, the associate version of the technology, gives employees another way to answer product and project questions while assisting customers.
Executive Vice President of Stores Joseph McFarland said adoption of the AI tool continues to increase.
“More associates are engaging with the tool every day,” McFarland told analysts, adding that it allows employees to answer questions more quickly and spend more time serving customers.
That use case is particularly significant for distributors because it applies AI to another traditional competitive advantage: employee product knowledge.
Rather than requiring every employee to develop deep expertise across every product category, Lowe’s is using AI to make more product and project information available to employees when they need it.
From AI Assistant to Sales Tool
Taken together, Lowe’s latest developments show AI moving across several stages of the customer transaction.
Mylow helps customers research projects and products. Mylow Companion helps employees answer questions. Material Lists helps contractors translate project requirements into products and quotes.
Lowe’s is also pairing those capabilities with investments in fulfillment, loyalty and digital Pro tools.
The strategy is particularly notable because the company is starting to report business results alongside AI adoption.
Mylow has handled more than 25 million questions. Customers using it convert at three times the rate of nonusers. Meanwhile, Lowe’s has posted online growth of more than 15% for two consecutive quarters, Ellison said.
For distributors, the competitive implications extend beyond Lowe’s adding another chatbot to its website.
Product expertise, project assistance and quote preparation have long been areas where distributors could differentiate themselves from large retailers and less specialized competitors.
AI is giving Lowe’s another way to scale those capabilities.
The next stage of competition will increasingly be about who can combine human expertise with AI to answer technical questions faster, identify the right products, prepare quotes and move customers from a problem to a completed order with fewer steps.
Lowe’s latest results provide evidence that customers are already responding.
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