Asda has announced its latest collaboration agreement with Microsoft, describing it as one of the largest technology deals in the UK retail sector.
The move will help accelerate the supermarket group’s transition to a cloud-first operational model, powered by the software giant’s artificial intelligence and machine learning technologies.
Microsoft Azure will serve as the backbone of Asda’s superdigital infrastructure, helping the retailer modernise its operations and unlock new efficiencies across the business. It is claimed that customers will benefit from faster, more personalised services as Asda uses advanced data analytics and developer tools, including Azure Databricks, Microsoft Fabric, and Copilot Studio.
A statement noted that the collaboration “empowers Asda to seamlessly adopt next-generation cloud solutions, ensuring rapid deployment of innovative services tailored to ever-evolving customer needs”. The group highlighted that AI-driven tools, such as Microsoft 365 Copilot, can streamline day-to-day operations by automating routine processes, allowing staff to focus on more strategic, high-value tasks.
Asda noted that its existing use of Fabric and Azure Databricks to process vast datasets will “enhance decision-making, deepen customer insights, and elevate the shopping experience”.
Building on a commercial relationship that began in 2022, the new agreement establishes Azure as Asda’s cloud provider. It also includes a joint investment fund dedicated to integrating new technologies into the core of the supermarket’s business.
“We’re thrilled to take our collaboration with Microsoft to the next level as we accelerate towards becoming a more agile, cloud-first business,” said Matt Kelleher, Chief Digital Officer at Asda.
“With the very best cloud and AI tools at our fingertips, this technology will boost productivity, help us to make better decisions, and simplify how we work – enabling us to continue delivering great value and service to our customers.”
Darren Hardman, CEO, Microsoft UK & Ireland, added: “This collaboration with Asda exemplifies how cloud and AI technologies can transform retail at scale. By integrating Microsoft Azure’s advanced capabilities, Asda is modernising its operations, empowering its colleagues, and enhancing customer experiences. We’re proud to support Asda in its journey to become an agile, cloud-first, AI-driven business.”
NAM Implications:
- Having spent so much on uncoupling itself from Walmart IT systems…
- …Asda still has an appetite for optimising IT in helping restore profitability (or rather EBITDA).
- That said, the real competitor is the clock.
- Fingers crossed…
