Kmart follows Bunnings in launching an AI online shopping tool as Australians prepare for a “fundamental change”.

Kmart is launching a new AI shopping assistant that it says will offer a new, more conversational way to shop online. The new assistant, called “Joy,” allows customers to virtually try on outfits and see what items like a new couch or coffee table would look like in their own homes.

It follows on the heels of Bunnings, also owned by parent company Wesfarmers, which launched its own AI shopping tool last month and has already reported a rise in conversions and basket sizes. Wesfarmers, which also owns brands such as Officeworks and Priceline, entered into multi-year partnerships with tech giants Google and Microsoft in February to integrate AI across its businesses.

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Joy searches for products across Kmart’s online inventory, including items from Kmart, Target and Kmart’s Marketplace.

Customers can narrow their search using everyday…