Woolworths is turning its grocery app into a smarter shopping companion with an upgraded Olive AI shopping assistant that can plan meals, scan lists, find specials and suggest money-saving Smart Swaps before customers reach checkout.

The new version of Olive moves beyond a basic customer service chatbot. It is designed to help Australian households organise the weekly shop, compare products and build baskets faster while keeping customers in control of every final purchase decision.

Woolworths Pushes AI Into Everyday Grocery Shopping

The upgrade follows Woolworths’ technology partnership with Google Cloud, as major retailers increasingly use generative AI to make online shopping more conversational. Instead of searching item by item, customers can ask Olive to help with meals, recipes, specials and basket planning.

Woolworths says the assistant can do the heavy lifting by suggesting products and building a basket, but shoppers must still review and approve all items before checkout. That means Olive can guide the shop, but it cannot complete the purchase on its own.

What Olive AI Can Do

Olive can create weekly meal plans based on a customer’s preferences, suggest recipes and identify products currently on special. Customers can also take a photo of what is already in their fridge or upload a picture of a meal they want to recreate, then ask Olive for recipe ideas and ingredients.

For busy families, this could reduce the time spent deciding what to cook. For budget-focused shoppers, it could make it easier to spot cheaper alternatives, avoid unnecessary purchases and make better use of ingredients already at home.

Smart Swaps Aim to Cut Grocery Costs

The main money-saving feature is Smart Swaps. Olive can suggest alternative products that may better suit a customer’s budget, preferences or basket. That could include a cheaper item, a better-value pack size, a similar ingredient or a product currently on special.

With grocery bills still a major pressure point for many Australian households, even small swaps can matter across a full weekly shop. Woolworths is positioning the tool as a way to make savings easier to find before customers reach checkout.

Snap & Shop and Smart Baskets Added

The Olive upgrade arrives alongside new app features. Snap & Shop lets customers take a photo of a handwritten shopping list or recipe and turn it into a digital shopping list inside the Woolworths app.

Woolworths is also adding Smart Baskets, which predict regular weekly items and suggest additions based on previous shopping habits. For customers who buy many of the same products each week, the feature could make repeat orders faster.

Customers Stay in Control

Woolworths Group managing director of eComX Amitabh Mall has said the company designed Olive so technology remains a helper rather than a decider. The supermarket says this matters because shoppers must check and approve every recommendation before completing an order.

The company also says Olive follows existing safety, product and privacy requirements. At this stage, Olive remembers information only during a specific shopping session rather than storing long-term preferences across future shops.

Experts Raise Questions About AI Recommendations

Consumer protection experts have warned that retailer-owned AI shopping assistants need clear safeguards. One concern is whether an assistant could nudge shoppers toward more expensive items, preferred brands or products that benefit the retailer more than the customer.

Woolworths says Olive does not prioritise its own-brand products or more expensive options. The company says recommendations are based on real-time stock availability, product popularity and preferences provided by the user during the session.

Why AI Mistakes Still Matter

Generative AI can process instructions, images and shopping requests, but it can still make mistakes. In a grocery setting, that could mean suggesting the wrong quantity, misunderstanding a dietary need or recommending a product that does not suit the customer’s request.

That is why review-before-checkout remains important. Shoppers should still check prices, brands, quantities, substitutions and specials before confirming an order.

Past chatbot incidents have shown why guardrails matter. Woolworths’ earlier Olive chatbot reportedly gave unusual responses during some customer service conversations, while an older Bunnings AI tool was criticised after giving unsafe electrical advice.

Bunnings and Kmart Are Already in the AI Race

Woolworths is joining a broader Australian retail AI race. Bunnings launched its AI shopping assistant Buddy in April, while Kmart followed with its own assistant, Joy. Overseas, major retailers are also adopting AI tools that help customers search, compare and build baskets through conversation.

For retailers, these tools can improve convenience while also supporting sales. Bunnings has already reported stronger online conversion rates and larger basket sizes after introducing Buddy, showing why more companies are moving quickly.

July Rollout for Pickup and Delivery Shoppers

The upgraded Olive AI shopping assistant will roll out in July for customers using the Woolworths app in pickup and delivery mode. Once available, shoppers will be able to use Olive for meal planning, recipe ideas, specials discovery, basket building and Smart Swaps.

The rollout also reflects a wider shift in consumer technology, where AI is moving from search and productivity tools into everyday services. Growing investment in Google’s AI infrastructure strategy helps explain why retailers are accelerating AI-powered shopping features.

For Woolworths, the real test will be whether Olive delivers practical value for customers. If the assistant consistently finds useful specials, suggests fair swaps and saves time without pushing unnecessary products, AI-powered grocery shopping could quickly become part of the weekly routine for Australian households.