Sainsbury’s and Microsoft connect as grocery giant looks to boost customer and colleague experience with AI

Sainsbury’s and Microsoft have announced a new five-year strategic partnership, using the latter’s artificial intelligence and machine learning capabilities and Sainsbury's datasets to help accelerate the retailer's recently announced Next Level Sainsbury’s strategy.

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

By tapping Microsoft’s products and expert engineering capabilities, Sainsbury's says it will put the power of AI in the hands of store colleagues 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 its colleagues.

The initiative will cover three core areas: 

• It will use generative AI to create a more interactive online shopping experience and improve customers’ search experience.

• Store colleagues 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, colleagues will be guided to the shelves that need replenishing; saving valuable time as well as ensuring sales opportunities aren’t missed.

  Employees 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.

• Sainsbury’s data assets combined with Microsoft 365 collaboration tools, generative AI and machine learning capabilities will enable it to 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

Clodagh Moriarty, Sainsbury’s Chief Retail and Technology Officer, says: “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, Microsoft UK, says: “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.”