Kmart Group explores AI integration in finance
Kmart Cautious with AI in Finance
Kmart Group, which has been running on RISE with SAP on AWS for over a year, is taking a measured approach to AI adoption in corporate finance. The retailer is currently using AI to streamline how its roughly 450 stores process vendor invoices. Enterprise Technology GM Craig Lanigan said AI presents opportunities to reduce costs and improve efficiency, but frameworks and governance need to be firmly in place before expanding its use across finance.
AI Streamlines Vendor Invoice Processing
One of the first practical applications of AI at Kmart has been in vendor invoice management, connecting directly to its cautious approach. Invoices that were once manually mailed, stamped, and coded are now scanned in-store. With AI recognizing the details automatically. This system reduces manual work for office staff, demonstrating the efficiency gains AI can bring while giving Kmart the confidence to explore further uses in finance.
ERP Consolidation Supports AI Expansion
Kmart’s AI technology initiatives are supported by a recent ERP consolidation following its 2023 merger with Target. Both brands now operate on a unified SAP S/4HANA system via RISE on AWS, which replaced Kmart’s older ECC system. Target’s prior S/4HANA experience helped Kmart finance teams transition smoothly. The upgrade has boosted productivity and usability while giving finance teams better access to insights. IT operations have also accelerated, with system upgrades now completed in just three months instead of a year. These changes set the stage for broader AI adoption across the business.
