Sainsbury’s enters generative AI partnership with Microsoft

Sainsbury’s has agreed a partnership deal with Microsoft to incorporate generative AI into the supermarket chain’s operations.

The five-year deal will see the British retail giant incorporate Microsoft generative AI to “improve customers’ search experience” for online shopping and AI customer support,

Sainsbury’s said it will also use Microsoft AI to improve the efficiency of in-store staff, with AI guiding workers to shelves that need restocking.

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

“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.”

The announcement did not disclose any financial details of the partnership, however, it referred to the “rich datasets” held by Sainsbury’s as part of the deal.

Clare Barclay, CEO of Microsoft UK, said: “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.”

UKTN has contacted Sainsbury’s and Microsoft for further comment.

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