Tesco has signed a three-year agreement with French start-up Mistral AI, as part of a broader strategy to strengthen its use of artificial intelligence across its operations.

The two companies will work together via a new joint “AI lab”, where Mistral AI and Tesco’s technology teams will co-create generative AI solutions for different parts of the Tesco business.

Tesco says its approach to AI is focused on improving the experience for its customers, colleagues and suppliers, while also enhancinging operational efficiency.

The agreement will explore a range of use cases, including content creation and document drafting; faster data analysis to deliver richer insights for colleagues; and new ways for staff to access information to better support customers.

“Innovation has always been part of Tesco’s DNA, and this agreement builds on our extensive track record in developing new technology and AI solutions, in ways that ultimately benefit our customers, colleagues and suppliers,” said Ruben Lara Hernandez, Data, Analytics & AI Director at Tesco.

Tesco adds that it has doubled the size of its technology team over the past five years and is already using AI, developed both in-house and with partners, across areas including online order route planning, product forecasting and personalised experiences through Tesco Clubcard.

Commenting on the partnership, Marjorie Janiewicz, Chief Revenue Officer and US GM at Mistral AI said: “Our Applied AI team will collaborate with Tesco’s experts to build customisable, controllable and frontier AI products to improve internal workflows and Tesco’s customers’ experience.”

Mistral AI says it is the only European company building large language models, while Tesco is the first major UK retailer to agree a partnership with the business.