J Sainsbury plc and Microsoft Corp. have announced a new five-year strategic partnership aimed at accelerating Sainsbury’s Next Level strategy by leveraging Microsoft’s advanced artificial intelligence (AI) and machine learning (ML) capabilities along with Sainsbury’s extensive datasets. This collaboration aims to enhance store operations, boost efficiency for employees, and provide superior service to customers, ultimately delivering stronger returns for shareholders under Sainsbury’s Save and invest to win programme.
Through the integration of Microsoft’s products and expert engineering skills, Sainsbury’s intends to empower its store colleagues with AI tools, making shopping more engaging and convenient for millions of customers across the UK, both online and in physical stores. This initiative will be supported by comprehensive upskilling programmes for Sainsbury’s employees, preparing them for the evolving AI-driven economy.
The partnership focuses on transforming Sainsbury’s across three core areas:
Enhanced Customer Experiences: Sainsbury’s plans to use generative AI to create a more interactive online shopping experience and improve customer search functionalities, making shopping both efficient and engaging.
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Empowered Store Colleagues: Real-time data and insights will be provided to store colleagues for key processes, such as smarter shelf replenishment. AI will integrate multiple data inputs, including shelf-edge cameras, to guide colleagues to the shelves that need restocking, saving time and ensuring sales opportunities are not missed. This AI-guided support will enable colleagues to address customer and coworker queries effectively, improving overall efficiency and service quality.
Data-Driven Business Operations: Combining Sainsbury’s data assets with Microsoft 365 collaboration tools, generative AI, and ML capabilities will facilitate better decision-making and operational efficiency. This will be achieved through Microsoft Azure, which is part of Sainsbury’s cloud ecosystem, reducing the time required to bring new services and innovations to market.
Clodagh Moriarty, Sainsbury’s Chief Retail and Technology Officer, commented, “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.”
Clare Barclay, CEO of Microsoft UK, 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.”
