Lowe's (LOW) Says Shoppers Who Use Its AI Assistant Convert at Triple the Rate

Lowe's Companies, Inc. (LOW) said on its 2026-08-19 earnings call that online customers who use its AI assistant convert at three times the rate of customers who do not. The company does not disclose the size of its online sales, and it has not established how much of that gap comes from AI [1].

Lowe's is the second-largest home improvement retailer in the United States, operating more than 1,700 stores and selling building materials, tools, appliances and garden supplies to do-it-yourself consumers and to professional contractors. Online is its fastest-growing channel in recent years.

One assistant, two interfaces

The assistant is called Mylow, rendered as Milo in the transcript of this call, and it runs in two places. The first is a customer assistant on the website and mobile app, answering questions about material selection, sizing and installation methods. The second is the Associate AI Companion used by store employees, who ask it about unfamiliar categories instead of consulting manuals or colleagues. Since launch, the tools have handled more than 25 million questions from customers and associates [1].

The claim is a ratio, not an amount

Management's result is a comparison: online customers who used the assistant converted at three times the rate of those who did not. The statement followed a disclosure of 15.7% year-over-year online sales growth and was repeated during the question-and-answer session [1].

Set against the full income statement, the supportable range is much narrower. Comparable sales grew 0.2% in the quarter and comparable transactions fell 2.1%. Reported revenue growth of 8.3% came mainly from the FBM and ADG acquisitions and is unrelated to AI [2]. The online channel is the only figure that moved in the same direction as the claim, but because the company never discloses online sales as a share of the total, a three-times conversion rate cannot be converted into an amount [2].

Asked about online growth, management named free delivery and same-day delivery first, then visual merchandising, personalization, the third-party marketplace and the loyalty program. The AI assistant came after those, one of six drivers [2].

The capability is not scarce among peers

Home Depot disclosed its own Magic Apron on a call one day earlier, covering the same two settings of website and store aisle, though without attaching any figures. Further down the peer set, Floor & Decor and Tractor Supply did not mention AI once in their recent calls [3]. What distinguishes Lowe's is that it published a number, not that it has a capability others lack [3].

What is established

The assistant has run at scale across two interfaces for six quarters, usage keeps accumulating, and management is willing to repeat the same conversion metric in prepared remarks.

Causation is not established. The three-times figure compares customers who chose whether to ask a question, and shoppers already intending to buy are more likely to ask one. The company describes no incrementality test and gives no base for the non-using group. The employee-side benefit is described only qualitatively, with no hours or labor cost attached, and no guidance is tied to the tool.

Application: Revenue Stage: Scaled Value realized: Moderate Confidence: Medium

Sources

[1] Drillr · Lowe's Companies, Inc. (LOW) · 2026-08-19 · earnings call

"Since its inception, Milo, which also powers our Associate AI Companion application, has supported over 25 million questions from customers and associates, demonstrating the strong adoption and resonance of the tool. In fact, the conversion rate for online customers who use Milo is triple that of customers who do not use the tool, reinforcing that a well-designed, agentic AI experience can be a clear driver in the purchasing decision."

[2] Drillr · Lowe's Companies, Inc. (LOW) · revenue trend verification

[3] Drillr · Lowe's Companies, Inc. (LOW) · peer comparison verification