Asda has renewed and expanded its collaboration with Microsoft in what it describes as “one of the largest technology deals in UK retail.”

The move will accelerate Asda’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.

Asda says its customers will benefit from faster, more personalised services through the use of advanced data analytics and developer tools.

“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.”

Matt Kelleher, Chief Digital Officer, Asda

AI-driven tools, such as Microsoft 365 Copilot, are already streamlining day-to-day operations by automating routine processes and allowing colleagues to focus on more strategic, high-value tasks.

Asda’s existing use of Fabric and Azure Databricks to process vast datasets will enhance decision-making, deepen customer insights and elevate the shopping experience.

Darren Hardman, CEO of Microsoft UK & Ireland, 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.”

The agreement includes a joint investment fund dedicated to integrating new technologies into the core of Asda’s business while colleagues will have access to training programmes, such as the Digital Skills Initiative, equipping them with the skills to thrive in a digitally-enabled workplace.