Tesco has signed a three-year agreement with French start-up Mistral AI, as part of a broader strategy to bolster the use of artificial intelligence in the retailer’s operations.
The partnership will give Tesco full access to the AI company’s commercial models, including any future developments, as well as its AI engineers.
The agreement includes a commitment for the two companies to work together through a new joint “AI lab” where Mistral AI and Tesco’s technology experts will co-create new generative AI solutions for different parts of the Tesco business.
Tesco’s approach to AI is focused on improving the experience for its customers, colleagues and suppliers, while also enhancing its wider operations.
The agreement between Tesco and Mistral will look at a range of areas, including content development and document drafting; speeding up data analysis to provide richer insights for colleagues; and developing new ways for colleagues to easily access information which they can use to help customers.
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.“Innovation has always been part of Tesco’s DNA, and this agreement builds on our extensive track record in developing new technology and AI solutions, in ways that ultimately benefit our customers, colleagues and suppliers.
Tesco Data, Analytics & AI Director, Ruben Lara Hernandez
We are proud to partner with Tesco, a leader in retail innovation. Our Applied AI team will collaborate with Tesco’s experts to build customizable, controllable and frontier AI products to improve internal workflows and Tesco’s customers’ experience.
Marjorie Janiewicz, Chief Revenue Officer and US GM at Mistral AI
Tesco has doubled the size of its technology team over the past five years in recognition of the huge potential for new technology to improve the overall experience for customers.
The retailer is already using AI, developed both in-house and with partners, across its operations. For example, artificial intelligence allows Tesco to find the most efficient routing for online orders to create more delivery slots for customers, helps with complex demand forecasting to ensure great product availability, and is allowing the retailer to engage with customers in an increasingly personalised way through Tesco Clubcard.
Mistral AI is the only frontier AI company in Europe that is building large language models, and Tesco is the first major UK retailer to strike a partnership with the leading European AI player, as part of its wider AI and technology strategy. The start-up has developed rapidly since its launch in April 2023 and has customers including HSBC, multinational insurer AXA and carmaker Stellantis.
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