Asda is ratcheting up its use of artificial intelligence and machine learning technologies as the supermarket giant plots faster, more personalised services through advanced data analytics and developer tools.
The move will see the company jump further into bed with Microsoft, in what it claims is one of the largest technology deals in UK retail.
Microsoft Azure will serve as the backbone of Asda’s digital infrastructure, enabling the retailer to modernise its operations and unlock new efficiencies across the business through tools including Azure Databricks, Microsoft Fabric and Copilot Studio.
Asda chief digital officer Matt Kelleher said: “We’re thrilled to take our collaboration with Microsoft to the next level as we accelerate towards becoming a more agile, cloud-first business.
“With the very best cloud and AI tools at our fingertips, this technology will boost productivity, help us to make better decisions, and simplify how we work, enabling us to continue delivering great value and service to our customers,” he added.
The partnership also allows Asda to adopt next-generation cloud solutions, ensuring rapid deployment of innovative services tailored to evolving customer needs.
Building on a commercial relationship that began in 2022, the agreement establishes Azure as Asda’s premier cloud provider. It also includes a joint investment fund dedicated to integrating new technologies into the core of the business.
Asda staff will be able to access training programmes such as the digital skills initiative offered by Microsoft.
Microsoft UK and Ireland CEO Darren Hardman added: “This collaboration with Asda exemplifies how cloud and AI technologies can transform retail at scale.
“By integrating Microsoft Azure’s advanced capabilities, Asda is modernising its operations, empowering its colleagues, and enhancing customer experiences.”
In August 2024, Asos signed a three-year AI deal with Microsoft as it pushed forward with its “commitment to operational excellence, efficiency, and data-driven decision-making”.
In August this year, Asda is launched a new ecommerce insight and collaboration platform as part of plans to boost online shopping operation – which, at £3.2bn a year in sales, is half of the size of Tesco’s.
The move, part of executive chairman Allan Leighton’s turnaround plan, saw the retailer team up with data analytics firm eStoreBrands to launch the tool, dubbed Asda Xpert.
The new platform has been designed to better help the supermarket and its suppliers understand, and, more effectively meet, the needs of its online shoppers.
It will work by providing brands with advanced data-driven insights, enabling them to optimise product performance, track market trends, and make smarter category decisions for the ecommerce site.
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