Asda signs landmark AI and cloud deal with Microsoft

The deal, announced today (22 September), will see Microsoft Azure established as the supermarket’s primary cloud platform, accelerating its shift to a “cloud-first” operating model.

The grocer will use Microsoft Azure as its core digital backbone, supported by tools such as Fabric, Databricks and Copilot Studio in a bid to ramp up productivity and deliver more personalised shopping experiences.

It is understood that Asda colleagues will also benefit from Microsoft’s Digital Skills Initiative, giving staff the training to adapt to the increasingly digital workplace.

Asda chief digital officer Matt Kelleher 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.”

Microsoft UK and Ireland CEO Darren Hardman: “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.”

The agreement builds on a commercial relationship first signed in 2022 and includes a joint investment fund to integrate new technologies across Asda’s operations.