(Alliance News) - J Sainsbury PLC and Microsoft Corp on Friday signed a five-year strategic partnership, designed to help deliver the food retailer's Next Level Sainsbury's strategy.
Sainsbury, the London-based supermarket operator, said it would harness Microsoft's artificial intelligence and machine learning capabilities to improve store operations and drive greater efficiency delivering stronger returns for shareholders.
Clodagh Moriarty, Sainsbury's chief retail and technology officer, said the collaboration will "accelerate our ambition to become the UK's leading AI-enabled grocer."
"It's one of the key ways we're investing in transforming our capabilities over the next three years, enabling us to take another big leap forward in efficiency and productivity, continue to provide leading customer service and deliver returns for our shareholders."
Clare Barclay, chief executive Microsoft UK, said it was "delighted" to be working with Sainsbury's.
UBS said while no financial information was disclosed, this partnership "should deliver cost savings" under the save and invest to win programme that is targeting GBP1 billion structural cost reduction from technology and automation investments.
"This partnership helps gain confidence behind the strategy to gain competitive cost advantage but the update itself is likely to be neutral to the share price in our view," UBS analysts said.
Shares in J Sainsbury rose 0.3% to 283.00 pence in London on Friday.
Microsoft closed down 0.5% at USD420.93 in New York on Thursday.
By Jeremy Cutler, Alliance News reporter
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