By Michael Susin


Sainsbury's signed a five-year partnership with Microsoft to use artificial intelligence to improve the shopping experience and enhance stores' productivity, without disclosing financial details.

The British grocer on Friday said it will use Microsoft's AI to provide real-time data at Sainsbury's stores and insights on how to improve its procedures.

"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," the company said.

It will be also used to create a more interactive online shopping experience and improve the customers' search experience.

Sainsbury's data assets will be combined with generative AI and machine learning capabilities to transform operations and make the business more efficient, reducing time to market for new services and innovations.

The technological boost is part of its recently launched growth strategy "Next Level Sainsbury's," as the group aims to invest in its capabilities across tech and infrastructure to drive growth and efficiencies by March 2027.

It aims to save 1 billion pounds ($1.27 billion) in structural costs and achieve more than GBP1.6 billion of retail free cash flow over the period.

"Our collaboration with Microsoft will accelerate our ambition to become the U.K.'s leading AI-enabled grocer. It's one of the key ways we're investing in transforming our capabilities over the next three years," Sainsbury's Chief Retail and Technology Officer Clodagh Moriarty said.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

05-17-24 0214ET