# 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.
- Title: Costco Uses AI to Manage Drug Inventory · Pymnts | Shortify
- Summary: Costco's AI system keeps pharmacy stocks above 98% while most retailers limit AI to look-up access.
- Keywords: costco, pharmacy, inventory, drug prices, retailers, in-stock levels, pharmacy services, Pymnts
- Source: Pymnts — https://pymnts.com/news/retail/2026/costco-trusts-ai-to-reorder-drugs-most-retailers-wont
- Author: PYMNTS
- Published: 2026-11-13T23:59:35+00:00
- Read time: 1 min
- Topics: costco, ai, pharmacy, inventory, drug prices, retailers, in-stock levels, pharmacy services, business, finance
## 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.
## Key takeaway

Costco uses AI to maintain 98% pharmacy in-stock levels, but 90% of retailers restrict AI to information retrieval.