Australian hardware chain Bunnings took centre stage at Google Cloud Next 2026 this week as it showed off Buddy, an artificial intelligence-powered shopping assistant that provides customers with expert advice and helps them find what they need.
The move comes as retail e-commerce is moving away from traditional search towards agentic commerce, where virtual agents have reasoning capabilities to understand context, identify complex needs, and act on behalf of the customer. Users no longer want to type keywords and then refine, sort, filter, browse and go through a long set of pages to find what they are looking for, said Belwadi Srikanth, principal for product management at Google Cloud. They want the AI to understand them very deeply and do the work for them.
Vivek Pradhan, Bunnings' general manager of data and AI, told the conference that the retailer recognised the limitations of its first-generation, in-house chatbot, Ask Bunnings AI. While it successfully surfaced Bunnings' 15-year archive of DIY content, it created a clunky experience that required customers to open multiple browser tabs, was unable to refine recommendations, and lacked the ability to process images.
Partnering with Google, Bunnings, which runs over 500 stores across Australia and New Zealand, built and launched Buddy in just over six weeks using Gemini Enterprise for CX. Replacing the existing chatbot on the Bunnings website, Buddy is designed to transform the e-commerce experience from product search to project search.
Rather than typing in keywords for individual items, a customer can tell Buddy they want to build an outdoor deck, for example. The agentic assistant will then recommend the necessary decking boards, underlying structures, measuring tools and power tools, while linking to Bunnings' trusted how-to videos.
Crucially, the Gemini-powered agent is multimodal. Customers can upload a photo of a handwritten shopping list to add items to their cart or upload an image of a broken obscure part, such as a specific furniture cam lock, which Buddy will visually identify and locate in the customer's nearest Bunnings warehouse.
Bunnings managing director Mike Schneider said the roll-out of the technology was a practical example of the business evolving to meet changing customer behaviours. Our customers come to Bunnings with projects big and small, and Buddy is designed to help make those projects easier to plan and get started, he said. This is about embracing and using AI in a practical, responsible way to complement the advice and service our team provides every day, while giving customers more options that suit how they want to interact with us.
Paul Migliorini, vice-president of Google Cloud Australia and New Zealand, said: AI is at its most powerful when it's solving everyday problems, and we're thrilled to be working alongside an iconic Australian brand like Bunnings to bring that to life. Using Gemini Enterprise for CX, we're combining the best of our AI and infrastructure with Bunnings' deep product expertise to create a true expert helper that meets customers right where they are – whether they type or share an image.
Following its progressive roll-out on the Australian website, Buddy will be launched in New Zealand later this year. Bunnings also plans to consolidate its customer service touchpoints, so that Buddy handles initial support queries. It also intends to integrate customer loyalty data, enabling the shopping assistant to offer hyper-personalised recommendations with customer consent, such as automatically suggesting tools from brands that a customer is already using.
The introduction of Buddy reflects a broader industry shift towards agentic AI in retail. Traditional e-commerce search has long relied on keyword matching, requiring users to manually filter and browse results to find products. However, as consumer expectations evolve, retailers are increasingly turning to conversational AI and virtual assistants that can understand natural language, ask clarifying questions, and execute tasks on behalf of shoppers. This approach not only reduces friction but also increases conversion rates by providing a more intuitive and personalised shopping experience.
Bunnings, a subsidiary of Wesfarmers, is one of the largest hardware retailers in Australia and New Zealand, with a strong focus on DIY enthusiasts, tradies, and home renovators. The company has historically invested in digital transformation, including online ordering, click-and-collect services, and its own content library of DIY guides and videos. However, the leap to an AI-powered agent represents a significant step beyond incremental improvements. By leveraging Google's Gemini model, Bunnings gains access to cutting-edge natural language processing, image recognition, and reasoning capabilities that were previously out of reach for many retailers.
Gemini Enterprise for CX is a suite of AI tools tailored for customer experience, built on Google Cloud's Vertex AI platform. It allows enterprises to build customised agents that can handle complex queries, maintain context, and integrate with existing systems such as inventory databases, loyalty programmes, and content management platforms. The fact that Bunnings was able to deploy Buddy in just over six weeks underscores the maturity of these tools and the company's agility in adopting them.
The multimodal nature of Buddy is particularly noteworthy. While many chatbots can only handle text, Gemini's ability to process images opens up new use cases, such as identifying a unique part from a photograph or adding items from a photo of a handwritten list. This addresses a common pain point for hardware shoppers, who often need to identify small, obscure components or remember complex part numbers.
Privacy and data consent are also key considerations. Bunnings has emphasised that any integration of loyalty data will be opt-in, reflecting growing regulatory and consumer scrutiny around data usage. In Australia, the Privacy Act and the Notifiable Data Breaches scheme set clear obligations for handling personal information, and retailers must tread carefully when using AI to personalise recommendations.
The competitive landscape in Australian retail AI is heating up. Major players like Woolworths and Coles have deployed chatbots for customer service, while specialist retailers like Bunnings are now pushing the boundaries with agentic assistants. Globally, Amazon has long used AI for product recommendations and voice shopping via Alexa, but the rise of generative AI is enabling even more natural and proactive interactions. For example, Google has partnered with several retailers in the US and Europe to deploy similar agents, and the success of Bunnings' Buddy could serve as a template for other hardware chains worldwide.
Challenges remain, however. Ensuring the AI provides accurate, safe, and unbiased advice is critical, especially for DIY projects where incorrect recommendations could lead to safety hazards or property damage. Bunnings has likely implemented guardrails and human oversight, but the agent will need continuous monitoring and updates. Additionally, customer adoption of AI agents is not guaranteed; some shoppers may still prefer browsing manually or speaking with in-store experts. Bunnings has stressed that Buddy is meant to complement, not replace, human staff.
Looking ahead, the integration of voice capabilities could further enhance the assistant's usefulness, allowing hands-free interaction while customers are in the workshop or on the job site. Bunnings may also explore using Buddy to power in-store kiosks or mobile app experiences, creating a seamless omnichannel journey. As AI models become more capable and affordable, the barrier to entry for such innovations will continue to lower, potentially democratising agentic commerce for smaller retailers as well.
In summary, the debut of Buddy at Google Cloud Next 2026 marks a milestone in Australian retail AI. It showcases how traditional brick-and-mortar chains can adopt cutting-edge technology to meet evolving customer expectations, while also highlighting the importance of responsible AI deployment. With plans to expand to New Zealand and integrate loyalty data, Bunnings is positioning itself as a leader in the agentic commerce wave.
Source: ComputerWeekly.com News