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Safeway AI Adoption Tracker

Last updated: August 9, 2026

4.0 Excellent

Overview

Safeway, operating under the Albertsons Companies umbrella, has emerged as a leader in retail AI transformation, leveraging artificial intelligence to fundamentally reshape the grocery shopping experience[1]. The company has deployed two primary AI-powered tools: Ask AI, launched in September 2025 using Google Cloud's Conversational Commerce agent, and an advanced agentic shopping assistant powered by OpenAI models launched in December 2025[2]. These AI initiatives have delivered measurable results, with Albertsons reporting that customers using Ask AI experience a 10% increase in basket size, contributing to the company's 21% digital sales growth in Q3 2025[3]. The AI transformation extends beyond customer-facing applications to include supply chain optimization, labor forecasting, and merchandising intelligence, positioning Safeway as part of a comprehensive enterprise-wide AI strategy that CEO Susan Morris describes as designed to 'fundamentally change how we operate and how customers experience Albertsons'[4].

AI Maturity Index

4.0 /5 Leader

Evidence high

  • AI deployed across customer experience, supply chain, labor management, and merchandising [news]
  • Named partnerships with Google Cloud, OpenAI, and Databricks for AI transformation [news]

Missing Evidence

  • No public AI governance policy or dedicated AI leadership structure mentioned

Evidence high

  • CEO positioned AI as fundamental transformation, not incremental improvement [news]
  • Advanced cloud data infrastructure and agentic commerce capabilities deployed [corporate]

Missing Evidence

  • Limited evidence of company-wide AI training programs

Evidence high

  • 10% basket size increase from Ask AI, 21% digital sales growth in Q3 2025 [sec]
  • AI mentioned 12 times in Q3 earnings call as key growth driver [news]

Missing Evidence

  • All evidence present

Radar Comparison

Company Sector Avg

Peer Comparison: Safeway vs retail

Based on 41 companies in sector

Dimension Safeway 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

10% increase for customers using Ask AI
Basket Size Increase
Source: https://www.supermarketnews.com/finance/albertsons-gets-a-big-boost-from-ai-during-q3
21% increase in Q3 2025
Digital Sales Growth
Source: https://www.supermarketnews.com/finance/albertsons-gets-a-big-boost-from-ai-during-q3
2.4% increase in Q3 2025
Same-Store Sales Growth
Source: https://www.supermarketnews.com/finance/albertsons-gets-a-big-boost-from-ai-during-q3
4
AI Initiatives
Source: Larridin Analysis

AI Initiatives

1

Albertsons AI Shopping Assistant (Safeway AI)

December 3, 2025

Active

Advanced agentic AI assistant powered by OpenAI models for end-to-end shopping tasks

Available as Safeway AI on Safeway websites, capable of meal planning, recipe importing, list building, and completing complex grocery tasks. Designed to reduce shopping time from 46 minutes to 4 minutes.

2

Ask AI Search Tool

September 2025

Active

AI-powered search and discovery tool using Google Cloud's Conversational Commerce agent

Accessible via search bar in all Albertsons banner store apps including Safeway, provides personalized product recommendations through natural language conversations. Early results show 10% increase in basket size among users.

3

AI-Powered Supply Chain Optimization

2025

Active

AI implementation across merchandising, supply chain, and inventory management

Includes demand forecasting, inventory optimization, and supply chain intelligence to reduce out-of-stock issues and improve operational efficiency.

Supply Chain
4

Generative AI Labor Management

2025

Active

AI-powered labor forecasting and scheduling optimization

Uses generative AI to optimize workforce scheduling, improve productivity, and ensure proper staffing levels across stores.

Forecasting

Frequently Asked Questions

Safeway offers two main AI tools: Ask AI (accessible through the search bar in Safeway apps) for personalized product search and recommendations, and Safeway AI (the web-based shopping assistant) that can plan meals, build shopping lists, and complete end-to-end grocery tasks.

According to Albertsons, the AI shopping assistant is designed to reduce grocery shopping time from an average of 46 minutes to as little as 4 minutes by automating meal planning, list building, and cart creation.

Yes, Albertsons reports that customers using the Ask AI tool experience a 10% increase in basket size, often adding one or more additional items to their cart through AI recommendations.

The advanced Albertsons AI shopping assistant is currently available on Safeway websites and is planned to expand to mobile apps in early 2026, with additional features like voice integration and in-store aisle location.

Safeway uses AI across multiple business areas including supply chain optimization, demand forecasting, inventory management, labor scheduling, and merchandising intelligence to improve operational efficiency and reduce costs.

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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