Tesco has embarked on a major new technological partnership, signing a three-year agreement with the French artificial intelligence firm Mistral AI. The deal forms a key part of the supermarket giant's strategy to significantly expand its use of AI across its entire operation.
A Strategic Partnership for Retail Innovation
The collaboration grants Tesco full access to Mistral AI's commercial models and its team of AI engineers, including any future technological developments the start-up creates. Ruben Lara Hernandez, Tesco's Director of Data, Analytics & AI, stated that combining the retailer's expertise with Mistral's "cutting-edge technology" is intended to save colleagues time, streamline processes, and enhance customer service.
"Innovation has always been part of Tesco’s DNA," Hernandez added, highlighting the company's established record in developing new tech and AI solutions that benefit customers, staff, and suppliers alike.
Focus on Internal Workflows and Customer Experience
The partnership will see Mistral AI's Applied AI team work directly with Tesco's own experts. Their goal is to build customisable and controllable AI products designed to improve internal workflows and, ultimately, the experience for millions of shoppers. Initial areas of focus are expected to include content development and document drafting.
Marjorie Janiewicz, Chief Revenue Officer at Mistral AI, expressed pride in partnering with a recognised leader in retail innovation. This move comes as Tesco competes fiercely with rivals like Sainsbury's, Asda, Morrisons, Aldi, and Lidl.
Tesco's Growing Investment in Technology
This agreement is not Tesco's first foray into AI; the retailer already utilises artificial intelligence developed both in-house and with partners across its business. However, it underscores a substantial and ongoing commitment to tech-driven improvement.
In a telling sign of its priorities, Tesco has doubled the size of its technology team over the past five years. This investment is a direct response to the recognised potential of new technology to fundamentally improve the overall customer experience.
The three-year pact with Mistral AI signals a sustained push to embed advanced AI tools at the heart of one of Britain's largest private employers, potentially reshaping how its stores and services operate in the years to come.
