Lowe’s (LOW) is confident that investments in artificial intelligence and human labor can coexist.
“We’re on the leading edge of AI as a company,” Lowe’s CEO Marvin Ellison told Yahoo Finance. “Having said that, … AI can write code, but it can’t climb a 12-foot ladder, and it can’t fix a hole in your roof.”
Earlier this month, the company’s nonprofit foundation committed to investing $250 million to help train and develop 250,000 skilled tradespeople by 2035.
Ellison said the investment comes as a shortage of construction workers will only get “exponentially worse.” He predicted that 41% of construction workers will retire over the next five years and the construction industry would need to add nearly 350,000 new workers to keep up with demand.
“We have lots of infrastructure projects around the country that need to be done, and we need to have people that can do it,” Ellison said.
The large number of data centers being constructed requires skilled labor, Ellison noted, and that’s in addition to the perennial demand for tradespeople like plumbers and electricians.
Ellison said that leaning into home repair and maintenance services will be a differentiator for the company in the age of AI.
Last month, the home improvement retailer launched a subscription service for home repairs called HomeCare+. For an annual fee of $99, Lowe’s workers will show up at your home twice a year to check on essential maintenance tasks, such as replacing HVAC filters or flushing an electric water heater.
The subscription caters to aging baby boomers and first-time homebuyers, among others.
“Service and combining that with the wonderful innovations that we’ll learn from AI is really the solution to future success,” Ellison said. “It’s not one or the other, but it’s both.”
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Lowe’s has also invested heavily in AI. Last March, the company partnered with OpenAI (OPAI.PVT) to create a chatbot called Mylow. It has also partnered with Nvidia (NVDA), Palantir (PLTR), and Google (GOOG, GOOGL) to optimize operations.
“The thing that AI is doing specifically for us is, is helping our associates do their jobs more effectively,” Ellison said. “It’s removing friction points for customers when they transact with us either in-store or online.”
Those investments could become crucial this year. Heading into 2026, Lowe’s forecast that the home improvement landscape would be weak, with same-store sales growth of flat to up 2% year over year.
