Lowe's Bets Big on AI: Can Mylow Companion Drive Retail Dominance?

Lowe’s has made a bold move in the evolving retail landscape with the March 2025 launch of Mylow Companion, an AI-powered tool designed to transform how its 300,000+ associates interact with customers across 1,700 stores. The system, built in partnership with OpenAI, aims to bridge the knowledge gap in home improvement retail by arming employees with instant access to expert-level advice, real-time inventory data, and project-specific guidance. Concurrently, Lowe’s introduced Mylow, a customer-facing AI assistant that offers tailored project recommendations and localized solutions. Together, these tools represent a $100 million+ investment in artificial intelligence, signaling Lowe’s ambition to redefine its position in a sector dominated by giants like Home Depot (HD) and Walmart (WMT).

The Mylow Companion rollout is particularly notable for its scale and integration. By embedding AI into associates’ daily workflows—via voice-to-text and natural language processing—Lowe’s addresses a critical pain point: inconsistent service quality due to high turnover. The system enables new hires to answer complex questions like “How do I install a smart thermostat?” or “What’s the best mulch for my garden?” with confidence, reducing reliance on memorized knowledge. Meanwhile, Mylow, available to customers via web and mobile, acts as a virtual project planner, linking DIYers to relevant products based on their ZIP code, budget, or skill level.

The strategic rationale is clear: Lowe’s aims to leverage AI to create a seamless, “human-plus-technology” experience that differentiates it from competitors. The company’s leadership has framed this as part of a broader tech ecosystem, including digital twin store simulations and Apple Vision Pro integrations. But how does this translate into financial returns?

Investors should scrutinize the potential ROI of these AI tools. Lowe’s has long struggled to match Home Depot’s margins, with its operating margin trailing at 8.5% versus HD’s 12.3% in 2023. If Mylow Companion reduces training costs and improves customer retention, it could narrow that gap. The system’s ability to guide customers to higher-margin products (e.g., premium tools or branded materials) could also boost average ticket sizes.

The data hints at early optimism. Lowe’s Q1 2025 earnings report noted a 4.2% increase in customer satisfaction scores in pilot stores, while associate retention improved by 6% during onboarding. However, these metrics lack long-term validation. The real test lies in scalability: Can Lowe’s maintain this performance across its massive footprint without technical hiccups?

Competitors are not standing still. Home Depot has its own AI tools in testing, and Walmart’s acquisition of Flipkart underscores its tech-driven expansion. Yet Lowe’s has an edge in domain expertise: its 80-year history in home improvement gives Mylow Companion a proprietary knowledge base unmatched by general retailers.

The investment thesis hinges on two factors: execution and market differentiation. If Lowe’s can sustain the initial gains in customer and associate satisfaction, its stock—which has lagged behind HD by 12% over the past year—could see a rebound. Conversely, a misstep in rolling out these tools risks further margin compression.

Conclusion: Lowe’s AI bet is a high-stakes gamble with massive upside. By addressing service consistency and customer education, Mylow Companion and Mylow could transform the company’s profitability. With a market cap of $36 billion and a P/E ratio of 15.6x (below HD’s 18.2x), the stock offers room for appreciation if the AI strategy pays off. However, the true test will come in 2026, when the full impact of these tools on sales growth, margins, and retention becomes clear. For now, Lowe’s has set an ambitious benchmark—turning associates into AI-powered experts—to defend its crown as the go-to brand for home improvement.