Microsoft announced on Friday the signing of a five-year contract with Sainsbury's aimed at improving the British supermarket chain's customer experience and the productivity of its in-store employees.

The partnership, which will combine the American technology group's AI and machine learning tools with the retailer's database, is aimed in particular at accelerating the implementation of Sainsbury's new 'Next Level' strategic plan.

Under the terms of the agreement, Sainsbury's will use Microsoft's generative AI solutions to create a more interactive shopping experience for online shoppers and improve customer searches.

At the same time, AI applications will provide in-store staff with real-time information on key processes such as shelf replenishment.

At head office level, the use of Microsoft 365 collaborative tools, generative AI and machine learning should enable better transformation of operations, facilitate decision-making and gain in operational efficiency, say the two groups.

On the London Stock Exchange, Sainsbury's shares were moving without much direction (+0.2%) on Friday morning following this announcement.

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