Sainsbury's turns to Microsoft for AI-driven 'Next Level'

Sainsbury’s has signed a five-year deal with Microsoft to tap into the tech giant’s artificial intelligence and machine learning capabilities and combine them with its own datasets to help accelerate the retailer’s new “Next Level Sainsbury’s” strategy.

The tie up aims to provide customers with more efficient and effective service, improve store operations and drive greater efficiency for staff with the ultimate goal of delivering stronger returns for shareholders under Sainsbury’s Save and Invest To Win programme.

By tapping Microsoft’s products and engineering capabilities, Sainsbury’s says it wants to put the power of AI in the hands of store staff and make shopping more engaging and more convenient for customers across the UK – both online and in-store. This will be supported by upskilling programmes for staff.

The initiative will cover three core areas. First, it will use generative AI to create a more interactive online shopping experience and improve customers’ search experience.

Second, store staff will have real-time data and insights for key processes, like smarter shelf replenishment processes. Using AI to pull together multiple data inputs, such as shelf edge cameras, staff will be guided to the shelves that need replenishing; saving time as well as ensuring sales opportunities are not missed.

Third, staff will have more time to focus on the things that matter to customers, with access to AI guided support to address customer and colleague queries effectively in the moment.

By combining Sainsbury’s data assets with Microsoft 365 collaboration tools, GenAI and machine learning capabilities the retailer reckons it will continue driving returns through its Save and invest To Win programme. This will be delivered through Microsoft Azure as part of Sainsbury’s cloud ecosystem, reducing time to market for new services and innovations.

Sainsbury’s chief retail and technology officer Clodagh Moriarty said: “Our collaboration with Microsoft will accelerate our ambition to become the UK’s leading AI-enabled grocer.

“It’s one of the key ways we’re investing in transforming our capabilities over the next three years, enabling us to take another big leap forward in efficiency and productivity, continue to provide leading customer service and deliver returns for our shareholders.”

Microsoft UK chief executive Clare Barclay added: “Today, Sainsbury’s has laid out a bold vision that puts AI at the heart of its business, accelerating the development of new services, which will enhance and transform the customer and colleague experience.

“We are delighted to be working with Sainsbury’s to power the next generation of retail.”