Asda announces renewed AI and Cloud Collaboration with Microsoft

Asda has agreed a new collaboration deal with Microsoft, marking one of the largest technology deals in UK retail, which will see it accelerate Asda’s transition to a cloud-first operational model, powered by Microsoft’s artificial intelligence and machine learning technologies.

The supermarket giant said Microsoft Azure will “serve as the backbone” of Asda’s digital infrastructure, enabling the retailer to “modernise its operations and unlock new efficiencies across the business”.

The move aims to enable customers to benefit from faster, more personalised services as Asda uses advanced data analytics and developer tools including Azure Databricks, Microsoft Fabric, and Copilot Studio.

Building on a commercial relationship that began in 2022, this agreement establishes Azure as Asda’s premier cloud provider. It also includes a joint investment fund dedicated to integrating new technologies into the core of Asda’s business.

Asda colleagues will also have access to training programmes such as the Digital Skills Initiative offered by Microsoft.

Matt Kelleher, chief digital officer at Asda, said: “We’re thrilled to take our collaboration with Microsoft to the next level as we accelerate towards becoming a more agile, cloud-first business. 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 and 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.”