Tesco and Mistral AI Sign New Generative AI Agreement

The agreement includes a commitment for the two companies to collaborate through a new joint “AI lab,” where Mistral AI and Tesco’s technology experts will co-create new generative AI solutions for various parts of the Tesco business.

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 collaborate through a new joint “AI lab,” where Mistral AI and Tesco’s technology experts will co-create new generative AI solutions for various parts of the Tesco business.

Tesco’s approach to AI focuses on improving the experience for its customers, colleagues, and suppliers, while also enhancing its broader operations.

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The agreement between Tesco and Mistral will cover 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 that they can use to help customers.

Tesco Data, Analytics & AI Director, Ruben Lara Hernandez, said, “By bringing together our retail expertise and Mistral AI’s cutting-edge technology, we hope this partnership will ultimately save colleagues time, improve our processes, and help us 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.

Marjorie Janiewicz, Chief Revenue Officer and US GM at Mistral AI, said, “We are proud to partner with Tesco, a leader in retail innovation.” 

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“Our Applied AI team will collaborate with Tesco’s experts to develop customisable, controllable, and frontier AI products that enhance internal workflows and improve Tesco’s customers’ experience.”

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 utilising AI, developed both in-house and in collaboration 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 an AI company in Europe that is building large language models. Tesco is the first major UK retailer to partner with the company, as part of its broader AI and technology strategy. 

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