Australian hardware chain Bunnings took centre stage at Google Cloud Next 2026 this week as it showed off Buddy, an artificial intelligence (AI) 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 rise of agentic commerce in retail

Agentic commerce represents a fundamental shift in how consumers interact with online stores. Instead of relying on static search bars and manual filtering, agentic systems use large language models and reasoning engines to interpret user intent. For retailers like Bunnings, this means customers no longer need to know the exact name of a product or navigate complex category trees. The AI handles the heavy lifting by understanding the project context and cross-referencing inventory, tutorials, and local store availability.

Google Cloud’s Gemini Enterprise for CX, unveiled at the event, is designed specifically for such use cases. It provides out-of-the-box multimodal capabilities, allowing businesses to build assistants that can process text, images, and even handwritten notes. Bunnings leveraged these capabilities to create Buddy in under seven weeks, a timeline that would have been unthinkable with traditional custom development.

The speed of deployment is partly due to Bunnings’ existing cloud infrastructure and data readiness. With over 500 stores and a massive product catalog, the retailer had already invested in digitising its inventory and training data. Google Cloud’s Vertex AI platform helped the team fine-tune underlying models on Bunnings’ specific DIY content, ensuring that Buddy’s recommendations are accurate and contextually relevant.

Multimodal interaction: a game changer for DIY

One of the most praised features of Buddy is its ability to interpret images. In the DIY world, customers often face the challenge of identifying a broken or obscure part. Instead of measuring or guessing its name, they can now snap a photo and upload it. Buddy uses computer vision to match the physical characteristics of the part against the product database, then shows where it can be bought or if it is in stock at the nearest store.

Similarly, handwritten shopping lists are a common artefact of home improvement projects. Rather than manually typing each item, a customer can photograph their list, and Buddy will parse the handwriting, check for synonyms and alternative names, and populate the cart with the correct products. This saves time and reduces friction, especially for customers who are not digitally savvy.

Bunnings has also integrated Buddy with its extensive video library. Over 15 years of DIY instructions are now searchable through natural language conversations. For example, a customer asking “how do I fix a leaky tap” will be presented with the relevant tutorial video along with the tools and parts needed, linked directly into the cart.

Plans for personalisation and customer service consolidation

Looking ahead, Bunnings intends to deepen Buddy’s capabilities by integrating with its loyalty programme. With explicit customer consent, the assistant will learn about past purchases, preferred brands, and project history. This will allow it to offer hyper-personalised recommendations, such as suggesting a particular brand of paint that a customer has used before or reminding them to buy extra supplies based on previous project patterns.

Another major initiative is the consolidation of customer service touchpoints. Currently, Bunnings operates separate channels for online chat, phone support, and in-store assistance. Buddy will become the first line of support, handling common queries about product availability, store hours, return policies, and DIY advice. Human agents will be freed to handle more complex issues, improving efficiency and customer satisfaction.

The New Zealand launch, scheduled for later in 2026, will follow a similar rollout strategy. Bunnings expects that Buddy will be an integral part of its omnichannel experience, bridging the gap between online research and in-store purchasing. Early results from the Australian deployment show that customers using Buddy have a higher average order value and lower bounce rates, indicating that the assistant is successfully guiding them through their projects.

Broader implications for AI in Australian retail

Bunnings’ adoption of agentic AI reflects a broader trend among Australian retailers. With public cloud spending in Australia expected to surpass A$33.6 billion in 2026, businesses are investing heavily in AI-driven customer experiences. ANZ Bank has rolled out AI agents for business bankers, and Oracle has opened an AI excellence centre in Sydney. Bunnings’ Buddy stands out because it directly targets the physical, hands‑on world of home improvement.

The success of such initiatives depends on data quality, ethical AI practices, and customer trust. Bunnings has emphasised responsible AI use, ensuring that Buddy only uses loyalty data with explicit consent and that human team members remain available for complex advice. The company also monitors Buddy’s outputs to prevent misinformation or unsafe recommendations, such as suggesting tools for tasks that require professional expertise.

As agentic commerce continues to mature, more retailers will likely follow Bunnings’ example. The ability to understand project‑level intent, combine visual and textual inputs, and provide seamless handoffs to human support represents the next frontier of e‑commerce. For now, Bunnings has set a benchmark that combines practical utility with cutting‑edge AI, all while staying true to its brand promise of helping customers with every project, big or small.

Source: ComputerWeekly.com News