Tesco has unveiled a significant new three-year partnership with French artificial intelligence start-up Mistral AI, aiming to enhance how it serves customers and streamline its operations.
A Strategic Alliance for Retail Innovation
The supermarket giant confirmed the collaboration, stating it will "bolster the use of artificial intelligence" across its entire business. This agreement marks a notable step, making Tesco the first major UK retailer to join forces with Mistral AI.
The core of the partnership will be a new joint "AI lab", where technology experts from both companies will work side-by-side. Their focus will span several key areas, including content development, advanced data analysis to uncover fresh insights, and creating new tools to help Tesco colleagues access information more efficiently to assist shoppers.
Building on Existing AI Foundations
Tesco is no stranger to using AI. The retailer already employs the technology in various parts of its operation. For instance, AI algorithms help determine the most efficient delivery routes for online orders, which in turn frees up more delivery slots for customers. It is also used for forecasting product availability to keep shelves stocked.
Furthermore, AI drives greater personalisation for users of the Tesco Clubcard. This new partnership with Mistral AI is designed to build upon this existing technological foundation, exploring more advanced applications.
Ruben Lara, Tesco's Director of Data, Analytics and AI, commented on the deal: "By bringing together our retail expertise and Mistral AI’s cutting-edge technology, we hope this partnership could ultimately save colleagues time, improve how we do things and help us to better serve our customers." He added that innovation is part of Tesco's DNA and that the agreement extends their track record in developing beneficial tech solutions.
Marjorie Janiewicz, Chief Revenue Officer at Mistral AI, said: "We are proud to partner with Tesco, a leader in retail innovation. 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."
Recent Community Initiatives and Promotions
The AI news follows a recent community-focused campaign by the supermarket. On December 6, Tesco gave away hundreds of "wonky" Christmas trees for free at selected stores across the UK. These trees had minor imperfections, such as uneven branches or a slight lean.
Instead of charging for them, Tesco encouraged recipients to make voluntary donations to the food charities Fareshare and Trussell Trust. The offer was available on a first-come, first-served basis at ten specific stores, including locations in Borehamwood, Bristol, Cardiff, Dundee, and Glasgow, with a limit of one tree per household.
In other promotional news, Tesco has also revealed a special offer for its Clubcard members throughout December. Shoppers will earn two Clubcard points for every £1 spent on third-party gift cards in Tesco stores. This means the double points apply not just to Tesco vouchers but to any gift card sold by the supermarket. The points are awarded automatically to the member's account.
