Retailer Home Depot (HD) has stepped out with a new AI-powered tool for professional builders and repairers.
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This comes as the shares of the world’s largest home improvement specialty retailer tumbled over 6% on Tuesday after its third-quarter earnings miss. In the three months ended September, the retailer’s comparable sales rose marginally by 0.2% overall due to a weaker housing market and softer consumer demand.
Home Depot Introduces Blueprint Takeoffs
The new tool is called Blueprint Takeoffs. The tool uses AI to deliver a complete material list and quote — also known as takeoffs — to house remodelers and builders, cutting the time it takes to complete such tasks from weeks to just a few days.
Home Depot noted that the tool is currently designed for project blueprints — detailed architectural plans for a building project — meant for single-family building projects. The feature will offer “competitive” quotes for required materials such as framing lumber, roofing, and trim, after reviewing multiple suppliers.
“What was once a logistical marathon is now a streamlined sprint, freeing Pros to focus on craftsmanship and client satisfaction,” Home Depot noted.
As the graphics below show, the new tool targets Home Depot’s largest source of revenue – building materials. It represents the company’s latest effort to integrate artificial intelligence into its operations.
Home Depot Banks on Artificial Intelligence
Already, Home Depot uses Magic Apron, a generative AI assistant it unveiled in March this year. The AI suite provides its customers with answers to product questions and how-to inquiries.
In partnership with Alphabet’s Google Cloud (GOOGL), the home improvement retailer also uses computer vision — the use of AI to automate tasks like identifying objects, tracking inventory, and reading barcodes — to monitor the quality standards of products on its shelves and improve its supply chain operations.
Is Home Depot Stock a Good Buy?
On Wall Street, Home Depot’s shares currently have a Moderate Buy consensus rating based on 18 Buys, seven Holds, and one Sell issued by 26 analysts over the last three months. The average HD price target of $416.91 indicates almost 24% upside potential.
