Sainsbury’s has signed a new five-year partnership with Microsoft, which will see it use AI and machine learning capabilities to accelerate its Next Level Sainsbury’s strategy.
The tie-up aims to improve store operations, drive greater efficiency for staff and provide shoppers with more efficient and effective service.
The supermarket plans to use Microsoft’s products and engineering capabilities to put “the power of AI in the hands of store colleagues and make shopping more engaging and more convenient for millions of customers across the UK – both online and in store”.
The pair will focus on three core areas. Firstly, using generative AI to create a more interactive online shopping experience and improve customers’ search experience, which will make shopping more efficient and engaging.
Secondly, empowering store staff by providing them with real-time data and insights for key processes, including 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 valuable time and ensuring sales opportunities aren’t missed.
Finally, the retailer will combine its data assets with Microsoft 365 collaboration tools, generative AI and machine learning capabilities, to help transform its operations, and run a more efficient business.
It said this would be delivered through Microsoft Azure as part of Sainsbury’s cloud ecosystem, which will reduce time to market for new services and innovations.
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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.”
In February, Sainsbury’s unveiled its “Next Level Sainsbury’s” strategy update, where it set out how it would boost profits by putting food, Nectar card and convenience first – along with a new set of £1bn cost savings.
Building on the momentum of its previous ‘Food First’ plan, chief execuive Simon Roberts claimed the plan would help take it to the next level, noting it was “just at the beginning of rediscovering quite what this business is capable of”.
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