IGD sat down with David McIntosh, Chief Connected Stores Officer at Instacart, to explore how agentic AI is beginning to reshape the grocery industry.

As retailers and brands look to move beyond automation toward more intelligent, autonomous systems, David shares how Instacart is applying agentic AI to drive smarter decision-making, more connected stores, and better experiences for both retailers and shoppers.

This interview forms part one of a two-part series with Instacart. In this first article, we focused on how agentic AI is already being applied today, while part two will look ahead to how agentic AI could further transform the industry.

How does Instacart define agentic AI internally, and where does it fit into your long-term strategy?

At Instacart, we view agentic AI as a tool that helps understand purchase intent, make informed decisions, and take action on behalf of customers and retailers. We envision a world where the entire food ecosystem is optimised through technology – especially AI. We’re already using it to make grocery shopping easier and help people answer the age-old question: what’s for dinner?

Instacart is also putting the power of AI directly in grocers’ hands, helping them to innovate faster, compete smarter, and deliver more personalised experiences. This marks the shift from static tools to intelligent partners that can anticipate needs and support better outcomes across the food ecosystem.

Agentic AI is central to Instacart’s long-term strategy because it allows us to reimagine the full shopping journey, from meal planning through fulfilment, while helping retailers serve their customers more effectively. Our goal is to build technology that not only guides decisions but also implements tasks that make shopping more personalised and more efficient.

Most recently, we launched the Instacart app within ChatGPT, becoming the first grocery partner to offer an end-to-end shopping and Instant Checkout experience directly inside a conversation. It’s a clear example of how agentic AI can turn inspiration into real-world action and shows how digital agents will play an increasingly important role in the grocery ecosystem.

Which parts of Instacart’s business are already benefiting from agentic AI and what impact have you seen so far?

We’re in the early stages, but we’re already seeing promising signs of how agentic capabilities can bring meaningful value to both our consumer experience and our enterprise technologies.

On the customer side, generative search tools help people move beyond keywords toward natural, conversational guidance that can personalise shopping.

Caper Carts – Instacart’s AI-powered smart trolleys – use NVIDIA’s edge AI for real-time computer vision and item recognition, so customers can simply place items in the cart and see them instantly appear.

They also deliver location-based recommendations that help customers discover relevant products and promotions based on where they are in the store. That intelligence is driving stronger engagement through real-time budgeting, personalised promotions, loyalty integration, and seamless checkout.

On the enterprise side, Instacart’s AI Solutions suite is helping retailers innovate faster and operate more efficiently.

In the US, Sprouts Farmers Market and Kroger recently announced they will adopt Cart Assistant, extending AI-powered meal planning, product discovery, and personalised recommendations across their digital channels.

We’re also seeing strong momentum with Store View, which uses computer vision and AI to give retailers real-time visibility into their shelves. These insights help reduce out-of-stocks, improve inventory accuracy, and make it more likely that customers can find the items they want both online and in-store.

Caper Cart deployments have already delivered double-digit basket growth at scale, and as retailers adopt more advanced agentic capabilities, we expect to unlock meaningful opportunities to build on that momentum.

We’re also seeing strong engagement with the experience today – shoppers spend an average of 30 minutes with Caper Carts, more than 40% engage with on-cart savings, and many actively seek out stores that offer the trolleys. Early partners are reporting stronger personalisation for their customers and basket-lift, which are encouraging signals as these capabilities continue to evolve.

How is agentic AI reshaping the way Instacart partners with grocery retailers and CPG brands?

Agentic AI is expanding the role Instacart can play as a strategic technology partner. For retailers, our enterprise solutions provide an AI-powered operating layer that optimises everything from product discovery to on-shelf visibility.

On Caper Carts, for example, customers see personalised recommendations displayed alongside contextually surfaced Sponsored Products, giving brands a way to engage shoppers at high-intent moments while helping customers discover relevant options.

And with Store View, retailers gain real-time shelf intelligence that helps reduce out-of-  stocks, improve inventory accuracy, and increase the likelihood that customers can find the items they’re looking for both online and in-store.

For CPG brands, emerging agentic capabilities will open new ways to integrate retail media into the shopping journey, enabling more contextual placements and richer creative experiences that reflect how customers actually shop.

Across both groups, Instacart’s approach is grounded in collaboration – testing, learning, and iterating alongside our partners to ensure AI delivers real, measurable value.  

Need more insights on agentic AI

To help industry understand the complexity, the direction of travel, and current case studies, we have created a comprehensive report called ‘Agentic AI and the future of shopping’ that subscribers can now access.

Share your story with the food & grocery industry

We welcome contributions from retailers, brands, and solution providers shaping the future of food and grocery. If you have a compelling case study or perspective on technology, operations, or shopper behaviour, we’d be keen to hear from you.

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