Bunnings, the iconic Australian hardware retailer with over 500 stores across Australia and New Zealand, took centre stage at Google Cloud Next 2026 this week as it unveiled Buddy, an artificial intelligence-powered shopping assistant. Built using Google's Gemini Enterprise for CX, Buddy is designed to revolutionise the way customers interact with the Bunnings website, moving from traditional product search to what the company calls 'project search'. This shift reflects a broader industry trend towards agentic commerce, where virtual agents understand context, identify complex needs, and act on behalf of the customer to deliver a seamless shopping experience.
Belwadi Srikanth, principal product management at Google Cloud, explained the rationale behind this evolution: '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. They want the AI to understand them very deeply and do the work for them.' This philosophy is embodied in Buddy, which replaces Bunnings' first-generation in-house chatbot, Ask Bunnings AI. That earlier system, while capable of surfacing the retailer's extensive 15-year archive of DIY content, created a clunky experience that forced customers to open multiple browser tabs, was unable to refine recommendations, and lacked the ability to process images.
Vivek Pradhan, Bunnings' general manager of data and AI, told conference attendees that the retailer recognised these limitations early on. Partnering with Google, the company built and launched Buddy in just over six weeks, a remarkable feat given the complexity of the underlying technology. The agentic assistant is multimodal, meaning it can accept both text and image inputs. For example, a customer can upload a photo of a handwritten shopping list to add items to their cart, or snap a picture of a broken furniture part, such as a specific cam lock, which Buddy will visually identify and locate in the customer's nearest Bunnings warehouse.
The practical applications of Buddy are vast. Instead of typing keywords for individual items, a customer can simply tell Buddy they want to build an outdoor deck. The assistant will then recommend the necessary decking boards, underlying structures, measuring tools, and power tools, while linking to Bunnings' trusted how-to videos. This approach not only saves time but also provides expert-level guidance that mimics the in-store advice Bunnings team members offer daily. Mike Schneider, Bunnings managing director, emphasised that the roll-out is about embracing AI in a practical and responsible way. '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 complementing the advice and service our team provides every day, while giving customers more options that suit how they want to interact with us.'
The timing of Buddy's launch coincides with a significant shift in e-commerce paradigms. Traditional online shopping relies on keyword-based search, requiring customers to sift through countless pages of results. Agentic commerce flips this model, putting the AI in the driver's seat to understand intent, anticipate needs, and execute tasks autonomously. This is particularly relevant for home improvement retail, where customers often tackle complex projects that require multiple components and specialised knowledge. Bunnings, which has long positioned itself as a trusted source of DIY advice, sees Buddy as a natural extension of its brand promise.
From a technical standpoint, Buddy is powered by Gemini Enterprise for CX, Google's suite of tools designed to enhance customer experience through generative AI. The system leverages large language models trained on vast amounts of data, including Bunnings' product catalogue, pricing information, and DIY content. Its multimodal capability is a key differentiator, allowing customers to communicate in ways that feel natural, whether typing, speaking, or sharing images. Paul Migliorini, vice-president of Google Cloud Australia and New Zealand, highlighted the partnership's significance: '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.'
The development of Buddy also reflects a broader push within the Australian retail sector towards AI-driven personalisation. Following its progressive roll-out on the Australian website, the assistant is scheduled to launch in New Zealand later this year. Bunnings has even more ambitious plans for the future: the company intends to consolidate its customer service touchpoints so that Buddy handles initial support queries, freeing human agents to tackle more complex issues. Additionally, the retailer plans to integrate customer loyalty data, enabling the shopping assistant to offer hyper-personalised recommendations with customer consent. For instance, if a customer regularly purchases tools from a particular brand, Buddy could automatically suggest complementary items from that brand, creating a more tailored shopping experience.
The implications of agentic commerce extend beyond Bunnings. Retailers worldwide are exploring how AI can reduce friction, increase conversion rates, and foster customer loyalty. By replacing a basic chatbot with a sophisticated agentic assistant, Bunnings is setting a precedent for how traditional brick-and-mortar retailers can evolve in the digital age. The success of Buddy will likely be measured not just in sales figures but in customer satisfaction and repeat usage. Early feedback from users has been positive, with many praising the ability to get project-specific advice without the hassle of manual searching.
From a competitive standpoint, Bunnings is positioning itself ahead of peers in the home improvement space. While other retailers are experimenting with chatbots and recommendation engines, few have deployed a fully multimodal agentic commerce solution at scale. The partnership with Google Cloud gives Bunnings access to cutting-edge AI infrastructure, including robust security and compliance features that are critical for handling customer data. The move also aligns with broader trends in Australian retail, where companies like ANZ Bank and Heidi are leveraging AI to automate workflows and improve customer experiences. As ANZ Bank recently began rolling out AI agents within its CRM system to help business bankers recover hours of lost productivity, and as Heidi builds AI models for medical documentation, the message is clear: Australian enterprises are embracing AI as a core part of their operations.
Bunnings' journey with AI did not start with Buddy. The retailer has been investing in data and AI capabilities for years, building a foundation that allowed it to pivot quickly when the opportunity arose. Ask Bunnings AI, the first-generation chatbot, laid the groundwork by demonstrating the value of natural language processing in retail. However, its limitations – such as the inability to refine recommendations or process images – highlighted the need for a more advanced solution. With Gemini Enterprise for CX, Bunnings found a platform that could handle multimodal inputs, understand nuanced queries, and generate accurate, context-aware responses. The six-week development timeline is a testament to the close collaboration between Bunnings and Google Cloud teams, as well as the mature state of Google's AI tools.
Looking ahead, the potential applications of Buddy are vast. Bunnings could extend the assistant to mobile apps, voice assistants, or even in-store kiosks, creating a consistent omnichannel experience. The integration of loyalty data could pave the way for predictive recommendations, where Buddy proactively suggests items based on a customer's purchase history and ongoing projects. For example, if a customer recently bought paint and brushes, Buddy might remind them to pick up drop cloths or painter's tape for their next project. Over time, the system could learn individual preferences and become more intuitive, acting as a personal DIY consultant.
The launch of Buddy also raises important considerations about data privacy and responsible AI use. Bunnings has stated that all personalisation features will be opt-in, requiring customer consent before leveraging loyalty data. The company is also committed to transparency, ensuring that customers understand how their data is used and that they can control their preferences. This approach aligns with Google Cloud's responsible AI principles, which emphasise fairness, accountability, and safety. In an era where consumers are increasingly wary of how their data is collected and used, Bunnings' cautious approach could build trust and differentiate it from less scrupulous competitors.
From an industry perspective, Buddy represents a milestone in the evolution of digital retail. As e-commerce continues to mature, the battleground is shifting from product availability and price to customer experience. AI-powered assistants that can understand context, anticipate needs, and provide expert guidance are becoming essential tools for retailers looking to stand out in a crowded market. Bunnings, with its strong brand recognition and deep product expertise, is well-positioned to lead this charge. The company's willingness to invest in cutting-edge technology and its ability to execute quickly will serve as a case study for other retailers.
In the broader context, the rollout of Buddy at Google Cloud Next 2026 underscores the growing importance of cloud-based AI solutions for enterprises. Google Cloud, which has been competing fiercely with Amazon Web Services and Microsoft Azure, scored a major win by landing a high-profile retail client like Bunnings. The showcase at Next also allowed Google to demonstrate the real-world capabilities of Gemini Enterprise for CX, providing a tangible example that other potential clients can relate to. For Bunnings, the exposure at a global tech conference elevates its standing as an innovative retailer, potentially attracting partnerships and talent in the AI space.
The development team behind Buddy faced several challenges, including integrating the AI with Bunnings' existing e-commerce platform, ensuring low latency for real-time interactions, and maintaining high accuracy across a vast product catalogue. By leveraging Google Cloud's infrastructure, the team was able to scale resources dynamically and iterate rapidly. The use of Gemini's advanced natural language understanding allowed Buddy to handle ambiguous queries and provide relevant responses, even when customers used colloquial language or incomplete descriptions. The multimodal capability, in particular, required sophisticated image recognition models that could identify obscure parts from photos and cross-reference them with inventory data.
Bunnings' commitment to AI extends beyond customer-facing applications. Internally, the company is exploring how AI can optimise supply chain operations, improve inventory management, and enhance employee training. The data and insights generated by Buddy could feed into these initiatives, creating a virtuous cycle of improvement. As Vivek Pradhan noted, the goal is to embed AI into the fabric of the organisation, not just as a standalone tool but as a core capability that drives decision-making across all functions.
The retail industry is watching closely. If Buddy succeeds in improving customer satisfaction and driving sales, it could set a new standard for what consumers expect from online shopping. The days of typing keywords and scrolling through endless product listings may be numbered. Instead, customers will expect AI to understand their projects, recommend the right products, and even anticipate future needs. Bunnings, with Buddy, is betting that the future of e-commerce is not about searching – it is about achieving.
Source: ComputerWeekly.com News