From Pymnts · PYMNTS · · 1m 10s
Costco Uses AI to Manage Drug Inventory
Costco's AI system keeps pharmacy stocks above 98% while most retailers limit AI to look-up access.
In brief
Costco's AI system keeps pharmacy stocks above 98% while most retailers limit AI to look-up access. Costco uses AI to maintain 98% pharmacy in-stock levels, but 90% of retailers restrict AI to information retrieval. Originally reported by Pymnts.
Costco's AI Pharmacy System
Costco uses ai to compare drug prices across suppliers and automatically reorder inventory, keeping pharmacy in-stock levels above 98%.
“Costco's pharmacy inventory system now compares prescription drug prices across vendors and "autonomously and predictively reorders inventory"”
AI Extends to Gasoline Operations
Costco is deploying ai tools in its gas business to improve inventory management and drive incremental sales.
Prescriptions Grow Double Digits
Prescriptions filled grew double digits in fiscal 2026 and pharmacy sales grew nearly 20%.
Retailers Limit AI to Look-Up
Ninety percent of retailers would restrict ai agents to information retrieval, while just 5% would permit limited execution with human approval.
AI Impact on Pharmacy Growth
Costco's ai system improved pharmacy in-stock levels and contributed to double-digit prescription growth.
Retailers Plan AI Budget Increases
Sixty-five percent of wholesale and retail firms plan to raise ai budgets over the next 12 months, and 40% of retail firms expect a return within one to two years.
What matters most
Costco uses AI to maintain 98% pharmacy in-stock levels, but 90% of retailers restrict AI to information retrieval.
