Wesfarmers Taps Microsoft and Google for AI Retail Push
Australian retail conglomerate Wesfarmers is deepening its partnerships with both Microsoft and Google Cloud to accelerate an AI-powered digital transformation. The owner of Kmart and Target will leverage Microsoft's AI for data analytics and customer experience. Simultaneously, it is partnering with Google Cloud to further expand its use of AI in retail operations, focusing on supply chain management and personalization.
- The multi-year agreements will see Wesfarmers expand its use of specific technologies like Microsoft's Azure OpenAI and Copilot Studio, and Google's Gemini Enterprise for Customer Experience. - A key internal focus is to more than double the company's use of Microsoft 365 Copilot, following observed productivity benefits among employees already using the tool. - Beyond Kmart and Target, the AI initiatives will be rolled out across Wesfarmers' other major brands, including Bunnings, Officeworks, Priceline, and Blackwoods. - A pilot program is already underway using Google's AI to create a conversational "agentic shopping" experience through the OnePass membership program, allowing customers to search across multiple retail brands in one place. - Both partnerships include custom AI upskilling programs for Wesfarmers' 118,000+ employees, with training adapted for roles ranging from in-store teams to corporate leadership. - This dual-partner approach is part of a deliberate multi-vendor AI strategy, building on a previous 2023 partnership with OpenAI to make ChatGPT Enterprise available across the group. - Wesfarmers is exploring the creation of "Copilot digital storefronts" and will use AI agents to improve supply chain functions like demand forecasting and inventory management to reduce costs and complexity.
