John Lewis stores are set to embrace artificial intelligence as the partnership strikes a £100m agreement with Google to reduce data storage expenses.
According to the Times, an AI customer service bot will be launched this year, while “augmented reality” services, which include virtually placing and adjusting interior design through a device, are in development.
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The deal, which is a “major expansion” to John Lewis’s partnership with Google, helps it reduce the cost of hiring third-party software developers as AI provides “more software per pound”.
“Imagine a world where a customer can use an image scanning feature in their John Lewis App to show our Home Design Stylists a room they’re looking to furnish, which tells us all we need to know about the intricacies of the space, layout and measurements,” chief technology officer Zak Mian said.
“Not only does it save customers a lot of time and hassle, but even before the appointment we can take inspiration from their unique preferences and give tailored recommendations that can even complement products they already have. We’re looking forward to an era of fresh innovation.”
This comes as the department store retailer launched a service allowing shoppers to virtually ‘try on’ their potential rental purchases, in partnership with fit software firm Zyler.
Thanks to swifter analysis of the large quantity of data collected by the retailer, offers become “more timely, relevant and personalised”, according to Mian.
Mian also stressed no job cuts or store closures were planned as part of the move.
“[As for] the idea of AI driving thousands of thousands jobs out, for me it’s more a question of … making people more productive.”
He argued that the Google deal “makes sense on a purely commercial basis, but the real value is the innovation that unlocks part of that broader transformation”.
Commenting on the new agreement with Google, chief executive at the John Lewis Partnership Nish Kankiwala said: “Core to our strategy is building our technology infrastructure for the long term, drawing on the latest innovations to benefit our customers.”
Does the move suggest that Waitrose might advance beyond self-service checkouts to implement automatic item counting and payment, similar to Amazon Go stores?
Mian commented: “There is uncertainty about whether customers desire aided assistance within a grocery store or prefer complete automation. Many of our customers appreciate the personal service offered by features like the fish, meat, and cheese counter located at the store’s rear – that aspect holds significance.”
John Lewis has been under pressure to return to the black after a £234m loss in the year to January meant the staff annual bonus was cancelled.
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