Britain’s Sainsbury’s (SBRY.L) announced a five-year strategic partnership with Microsoft (MSFT.O) on Friday, leveraging the tech giant’s artificial intelligence capabilities alongside the supermarket’s extensive data. The collaboration aims to boost revenue and achieve cost savings by using generative AI to personalize shopping experiences and improve staff efficiency.
As Britain’s second-largest grocer after Tesco (TSCO.L), Sainsbury’s plans to use AI to enhance online shopping interactivity and refine search functions. In-store staff will benefit from real-time data and insights for critical processes such as shelf replenishment. Additionally, the partnership is expected to accelerate the time to market for new services and product innovations. While no financial details were disclosed, Sainsbury’s continues to pursue a cost-savings target of 1 billion pounds ($1.3 billion) over three years and aims for up to 10% profit growth in the current financial year.