Yahoo Finance Sainsbury's signs pact with Microsoft to enhance AI capability
Sainsbury’s today became the latest major business to invest in its artificial intelligence capability after Britain’s second-biggest supermarket unveiled a five-year AI deal with Microsoft.
The partnership, which will be delivered through Microsoft’s Azure cloud system, will see the rollout of a host of new digital tools to improve customer experiences in-store and online.
The supermarket said it will use generative AI to create a more interactive online shopping experience and improve online search functionality, to make shopping more efficient and engaging.
Sainsbury’s also said it will use AI and devices such as shelf edge cameras to guide shop workers to the shelves that need replenishing to save time and ensure aisles are restocked quickly.
Staff will get access to AI-guided support to address customer and colleague queries, and will be given training on how to use the new tools.
Clodagh Moriarty, Sainsbury’s Chief Retail and Technology Officer, 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.”
Sainsbury’s did not disclose the cost of the contract.
Britain’s biggest businesses have rushed to enhance their AI capabilities over the past year amid a surge in interest in the technology. Microsoft has been a major beneficiary, having also signed a $1.5 billion cloud deal with telecoms giant Vodafone, which includes an upgrade to its AI functionality.
Microsoft has emerged as one of the biggest players in the AI industry and has invested billions of dollars into OpenAI, the California-based maker of ChatGPT. The tech giant’s shares have risen by more than a third over the past year, overtaking Apple to become the world’s most valuable listed company with a market cap of more than $3 trillion.
There are also signs London is establishing itself as a major global hub in the cutting-edge ‘deep tech’ sector, which includes areas like advanced computing, artificial intelligence, cyber security and biotechnology.
Hundreds of new AI startups have been set up since the start of last year while several major US tech firms have established London bases. Microsoft has said it intends to spend at least £2.5 billion to expand its AI infrastructure in the UK. That includes the opening of a new AI hub in Paddington as well as a group of new data centers, the vast computer warehouses used to store and process the data on which AI is trained.
“What we’re seeing is the benefit from deeptech ecosystems which take years to form because you need multiple parts of the equation: not just the research but the capital and top talent,” said Max Bautin, managing partner of IQ Capital.
“It takes time to get the ecosystem to a level where it can produce great companies systematically that can achieve a market share in the long term. 30 years in we are starting to really reap the benefits.”
