A five-year partnership with Microsoft could help supermarket chains leverage AI to reduce costs and improve staff efficiency.
advertisementBritish supermarket giant Sainsbury's could become the latest retailer to find new ways to leverage AI to gain better insights into customer shopping behavior and streamline its services.
The supermarket revealed it had signed a five-year partnership with Microsoft, but the exact details and amount of the deal were not disclosed.
Sainsbury's is expected to leverage its own data and consumer behavior insights, while Microsoft is expected to provide technical support to help retailers strategize on how best to introduce and leverage AI into their businesses. We plan to provide our expertise.
The partnership aims to improve consumers' online shopping experience, making it more interactive and easier to use, as well as enhancing search functionality.
On the employee side, AI could help employees gain insight into critical processes, as well as support logistics functions such as restocking shelves by letting staff know when and for how long inventory is low. You may have access to real-time data that can be used. It is expected that this will continue. AI is also expected to increase inefficiencies in the way employees work.
Development of new products and services may also occur more quickly.
However, it is believed that one of the main reasons for this partnership is that Sainsbury's has embarked on a very ambitious cost-cutting plan that is expected to save up to £1 billion (€1.17 billion) over the next three years. It will be done. AI is known to greatly help businesses reduce costs and streamline processes.
This is also expected to go a long way in attracting and retaining customers and investors, with the retailer expecting profit growth to reach around 10% this fiscal year.
What other grocery chains are using AI?
Recently, many grocery chains have jumped on the AI bandwagon primarily for cost-cutting and efficiency benefits.
Among them is Sam's Club, the American membership warehouse club retail chain, which said it would use AI to check receipts before customers leave the store. Geisler's supermarkets could start using AI-powered carts instead of traditional carts, while another supermarket chain, Kroger, plans to use self-checkout.
As reported by Modern Retail, Melissa Minkow, director of retail strategy at digital consulting firm CI&T, said: It is critical for retailers to optimize their employees' time so that they can be fulfilled and interact with customers in the most effective way.
“Shoppers are definitely more likely to purchase larger baskets. It also increases brand reputation, as customers leave feeling more satisfied with their interactions with associates.”
