Asda has unveiled its latest collaboration agreement with Microsoft, marking one of the largest technology deals in UK retail.
The move is set to accelerate the grocer’s transition to a cloud-first operational model, powered by Microsoft’s artificial intelligence and machine learning technologies.
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.
Shoppers will benefit from faster, more personalised services, according to the supermarket, as it uses advanced data analytics and developer tools including Azure Databricks, Microsoft Fabric and Copilot Studio.
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,” he added.
The partnership also allows Asda to adopt next-generation cloud solutions, ensuring rapid deployment of innovative services tailored to evolving customer needs.
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Building on a commercial relationship that began in 2022, the 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 the business.
Asda staff will be able to access training programmes such as the digital skills initiative offered by Microsoft.
Microsoft UK and Ireland CEO Darren Hardman said: “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.”
In August 2024, Asos signed a three-year AI deal with Microsoft as it pushed forward with its “commitment to operational excellence, efficiency, and data-driven decision-making”.
While Currys was also named by Microsoft as its first official retail repair partner in the UK last year.
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