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Daily Newsletter

14 August 2023

Daily Newsletter

14 August 2023

John Lewis £100m Google Cloud deal focuses on AI customer experience

UK retailer John Lewis has revealed a strategic partnership with Google Cloud over the next five years that aims to create a more personalised customer experience using advanced Artificial Intelligence (AI).

Isatou Ndure August 11 2023

The John Lewis Partnership has partnered with Google Cloud, which aims to help organisations to digitally transform, on a deal worth £100m ($127m) to provide customers with even more tailored and personalised experiences. 

The deal which includes both UK fashion and homeware retailer John Lewis and UK supermarket Waitrose, will mean more of the organisation’s technology will migrate to Google Cloud, harnessing the cloud provider’s latest and most innovative technologies, including advanced artificial intelligence (AI) and machine learning (ML).

The agreement represents a major expansion on the relationship established between the two companies back in 2012.

John Lewis Partnership's chief transformation and technology officer Zak Mian said: “Today's announcement marks a significant step in transforming our technology, and ensures that our partners have the best tools to provide our customers with even more personalised experiences, across all our channels.”

Google Cloud CEO Thomas Kurian added: “By turning to Google Cloud’s leading AI and ML tools, John Lewis will help transform the Partner experience, which in turn will deliver a better and more seamless experience for its customers.”

It is hoped this integration of tools will empower the John Lewis Partnership workforce to enhance efficiency, allocate more time towards customer engagement, and effectively leverage data insights for refining product and service curation.

The investment in Google Cloud is part of John Lewis Partnership's transformation strategy and with Google Cloud, it wants to take its retail experience to new heights by spanning both physical stores and digital platforms, including johnlewis.com, waitrose.com and introducing a new pan-Partnership loyalty programme in 2024.

John Lewis Partnership CEO Nish Kankiwala said: “Investing in cutting-edge technology is not just a choice, it’s a necessity for a modern retailer like us. Core to our strategy is building our technology infrastructure for the long term, drawing on the latest innovations to benefit our customers.”

The John Lewis Partnership said it was the first UK retailer to have net-zero science based targets validated by the Science Based Targets initiative (SBTI) in June 2023.

Generative AI well positioned to have a lasting impact on the retail and apparel industries

Generative AI can enhance engagement through customer service interfaces, protect retailers against fraud and cyberattacks, and improve purchasing journeys through personalized product recommendations and inspiration based on shopping and browsing patterns. When adopting generative AI, retailers must also ensure that consumers are provided with accurate and up to date information to ensure better purchasing decisions. The challenges faced by generative AI in retail and apparel theme are bias, hallucinations, privacy, misinformation, and copyright. Enterprises are concerned about data leakage as well.

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