Asda Strikes Landmark Cloud And AI Deal With Microsoft

Earlier this week, Asda unveiled a major collaboration with Microsoft, marking one of the largest technology agreements in UK retail. The move is set to accelerate the supermarket’s transition to a cloud-first business model, powered by Microsoft’s artificial intelligence and machine learning technologies.

At the heart of the partnership is Microsoft Azure, which will underpin Asda’s digital infrastructure and drive the modernisation of its operations. From faster, more personalised services for shoppers to smarter data-driven decisions behind the scenes, the retailer is banking on a digital transformation to reshape the customer experience.

Advanced developer tools including Azure Databricks, Microsoft Fabric, and Copilot Studio will allow Asda to deploy innovations rapidly, while AI-driven solutions such as Microsoft 365 Copilot are already automating routine tasks and freeing colleagues to focus on higher-value work.

Building on their commercial relationship that began in 2022, the new agreement cements Azure as Asda’s primary cloud provider and includes a joint investment fund to bring fresh technology into the core of its business. The deal also promises direct benefits for Asda colleagues, who will gain access to Microsoft’s Digital Skills Initiative to build the expertise needed for a digitally enabled future.

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 of Microsoft UK & 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.”