British supermarket chain Asda has partnered Microsoft to expedite its move to a cloud-first operational model.

Microsoft’s AI and machine learning technologies will support the cloud transition, with Microsoft Azure as the backbone of the retailer’s digital infrastructure.

The move, described as one of the largest technology deals in the UK’s retail sector, builds on a commercial alliance dating back to 2022.

It appoints Azure as the primary cloud provider of Asda and creates a joint investment fund to embed new technologies into the retailer’s core operations.

Asda believes that the partnership will drive efficiencies across the business.

The company's use of analytics and developer tools such as Azure Databricks, Microsoft Fabric and Copilot Studio will offer customers faster and more customised services.

The partnership enables Asda to adopt next-generation cloud solutions quickly, supporting quick rollout of services aligned with changing customer preferences.

Asda chief digital officer Matt Kelleher stated: “With the very best cloud and AI tools at our fingertips, this technology will boost productivity, help us to make better decisions, and simplify how we work - enabling us to continue delivering great value and service to our customers.”

AI tools such as Microsoft 365 Copilot are already simplifying everyday work by automating routine tasks. Asda's ongoing use of Fabric and Azure Databricks to process large datasets will improve decision‑making and deepen customer insight.

Asda colleagues will benefit from Microsoft training programmes, including the Digital Skills Initiative.

In early 2025, Asda began a trial of live facial recognition technology across five stores in Greater Manchester, England. The aim was to assess the technology’s potential in improving the safety of staff and customers within its premises amid a surge in retail crime.

Meanwhile, in a separate development in August 2024, online fashion retailer Asos reached a new three-year partnership with Microsoft, reinforcing data-driven decision-making.

The partnership enhances Asos’ use of AI features already integrated into Microsoft solutions, such as process automation, automated meeting summaries and Microsoft Copilot for Microsoft 365 and Copilot for Github – implemented by the retailer since early 2023.