Asda has entered one of the UK retail sector’s largest cloud and AI partnerships, selecting Microsoft Azure as its primary cloud platform to drive a “cloud-first” strategy. Confirmed on 22 September, the deal will underpin Asda’s digital transformation, enhancing operational efficiency and delivering more personalised customer experiences.
The supermarket will adopt Microsoft tools including Fabric, Databricks and Copilot Studio to improve data-driven decision-making and productivity. Employees will also benefit from Microsoft’s Digital Skills Initiative, gaining training to adapt to a more AI-enabled workplace.
Matt Kelleher, Asda’s Chief Digital Officer, said the partnership will simplify operations while adding customer value. Microsoft UK & Ireland CEO Darren Hardman described it as “modernising Asda’s operations at scale, empowering colleagues and enriching customer interactions.”
The agreement builds on a 2022 collaboration and includes a joint investment fund to roll out new technologies across Asda’s operations. Earlier this year, the retailer introduced Microsoft Surface Copilot+ devices to boost efficiency and collaboration.
Asda’s move reflects a broader retail trend towards AI adoption. Sainsbury’s signed a five-year deal with Microsoft in 2024 to improve shopping personalisation, while Currys has partnered with Microsoft and Accenture to modernise its tech estate using generative AI.
Microsoft’s Digital & AI Skills Hub, which has already trained 1.5 million people across the UK, will support Asda’s workforce in building AI competencies.
By embedding cloud and AI technologies, Asda aims to become a more agile, efficient and customer-focused business—reinforcing both its competitiveness and the UK’s position as a leader in responsible, AI-driven retail innovation.
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