PetSmart logo

PetSmart AI Adoption Tracker

Last updated: August 9, 2026

4.0 Excellent

Overview

PetSmart, North America's leading pet specialty retailer with nearly 1,700 stores, has positioned itself as a leader in retail AI transformation[1]. The company has developed a comprehensive AI strategy spanning personalized marketing, operational optimization, and customer experience enhancement. CEO Doug McMillon positioned 2026 as 'the year where tinkering becomes transformation'[2], signaling a shift from experimental AI to practical business impact. PetSmart's AI initiatives include the revamped Treat Rewards loyalty program using AI decisioning to achieve a 22% increase in offer activations[3], partnership with Vetster for virtual veterinary support[4], and deployment of GreyOrange's gStore platform for inventory management[5]. The company has also integrated AI into fraud detection, saving an estimated $12 million annually[6].

AI Maturity Index

4.0 /5 Leader

Evidence high

  • AI deployed across loyalty, inventory, fraud detection, search, and virtual vet services [news]
  • Partnerships with Hightouch, GreyOrange, Kount, Algolia, and Vetster [news]

Missing Evidence

  • Limited evidence of dedicated AI governance structure

Evidence high

  • CTO Greg Fancher leads digital transformation with microservices and AI [blog]
  • 18,000 employees at headquarters use ChatGPT Enterprise [news]

Missing Evidence

  • Limited evidence of organization-wide AI fluency programs

Evidence high

  • 22% increase in loyalty program offer activations [news]
  • $12 million annual savings from AI fraud detection [blog]
  • Loyalty members account for over 90% of transactions [news]

Missing Evidence

  • Limited evidence of AI impact in SEC filings

Radar Comparison

Company Sector Avg

Peer Comparison: PetSmart vs retail

Based on 41 companies in sector

Dimension PetSmart Sector Avg Diff
Adoption 4.0 3.5 +0.5
Proficiency 4.0 3.2 +0.8
Impact 4.0 3.3 +0.7
Overall 4.0 3.3 +0.7

Key Metrics

22% increase in 2024
Offer Activation Increase
Source: https://www.modernretail.co/marketing/how-petsmart-is-using-ai-in-its-revamped-loyalty-program/
75 million members (up from 67 million)
Loyalty Program Growth
Source: https://www.modernretail.co/marketing/how-petsmart-is-using-ai-in-its-revamped-loyalty-program/
Over 90% of transactions traced to Treat Rewards accounts
Transaction Coverage
Source: https://www.modernretail.co/marketing/how-petsmart-is-using-ai-in-its-revamped-loyalty-program/
6
AI Initiatives
Source: Larridin Analysis

AI Initiatives

1

Vetster Virtual Veterinary Support Partnership

January 2026

Active

Virtual veterinary platform providing real-time access to licensed veterinarians for store associates

Rolled out to select US stores, enabling associates to connect with veterinarians instantly through secure medical platform for real-time care guidance across all species in PetSmart stores.

2

AI-Powered Treat Rewards Loyalty Program

April 2025

Active

Revamped loyalty program using AI decisioning to personalize offers and optimize communication timing

Uses Hightouch's AI Decisioning model to tailor specific messages to customers based on purchase history and behavior. The program has three tiers (member, bestie, VIPP) and achieved 22% increase in offer activations with members spending significantly more.

Customer Experience
3

gStore AI-Powered Inventory Management

January 2025

Active

GreyOrange's SaaS gStore platform for optimizing inventory management and store operations

Deployed across nearly 1,700 stores with capabilities for digital fulfillment optimization using dynamic pick paths and real-time inventory data. Reduces time needed to execute online orders from stores.

4

Algolia AI-Powered Search Enhancement

2024

Active

AI-driven search and personalization platform for improved product discovery

Implementation of Algolia's search platform to improve inventory-aware omnichannel search performance and relevance for customers.

Customer Experience
5

Microservices Architecture and Digital Transformation

2024

Active

Re-platforming to microservices architecture to enable faster AI and technology innovation

Shift from distribution center-focused to store-based e-commerce fulfillment model, enabling faster iteration on customer experience and AI implementation.

Frequently Asked Questions

PetSmart uses AI Decisioning from Hightouch to personalize offers based on customer purchase history and optimize communication timing, achieving a 22% increase in offer activations with its Treat Rewards program.

PetSmart uses Kount's AI and machine learning platform that analyzes transaction data through hundreds of models in 250 milliseconds, helping save an estimated $12 million annually by preventing fraudulent orders.

PetSmart has deployed GreyOrange's AI-powered gStore platform across nearly 1,700 stores for inventory management and digital fulfillment optimization.

PetSmart partnered with Vetster to provide store associates with real-time access to licensed veterinarians through a virtual platform, enhancing in-store pet care capabilities.

PetSmart's Treat Rewards loyalty program has 75 million members (up from 67 million before the AI-powered relaunch) and accounts for over 90% of the company's transactions.

In Application

ApplicationVendorUse Case
AI DecisioningHightouchLoyalty program personalization and campaign optimization
gStore PlatformGreyOrangeInventory management and digital fulfillment optimization
Kount Fraud DetectionKountReal-time fraud detection and prevention for e-commerce transactions
Search and PersonalizationAlgoliaAI-driven product search and inventory-aware omnichannel experience
Virtual Veterinary PlatformVetsterReal-time veterinary consultation support for store associates

Sources

Related Companies

About AI Tracker

AI Tracker is a research project by Larridin, the AI execution intelligence platform.

Methodology: We analyze earnings calls, press releases, partnership announcements, and product documentation. All assessments are based solely on publicly available information—no private customer data is used.

Maturity Scoring: Each dimension is rated on a 4-tier scale (Nascent → Emerging → Scaling → Leading) based on evidence from public sources. Industry averages are computed as the median across all tracked companies in the sector.

Update cadence: Every 2-3 weeks
Last updated: August 9, 2026