Tesco is considering using AI to improve customer shopping experiences based on Clubcard data.
- Ken Murphy, CEO of Tesco, shared insights into potential AI applications at the Future of Retail event.
- The AI system aims to suggest healthier and more economical shopping options for consumers.
- Potential AI prompts include buying advice on upcoming deals and reducing food wastage.
- Tesco’s initiatives may lead to beneficial changes in consumer buying behaviour.
In an effort to harness technology for consumer benefit, Tesco’s CEO Ken Murphy has revealed plans to use artificial intelligence (AI) to enhance the shopping experience by leveraging data from its Clubcard programme. Speaking at the Future of Retail conference, Murphy discussed how this AI integration could potentially guide customers towards healthier and budget-friendly shopping options.
Murphy highlighted AI’s capability to monitor purchasing patterns and suggest alternatives that might offer better value for money. “It can start nudging you to say if you wait another week to buy this, this is coming on deal,” Murphy explained, indicating a strategic approach to maximise customer savings.
Additionally, the AI could play a role in minimising food waste by advising shoppers on quantity management. It would also recommend healthier substitutes, thus personalising dietary suggestions based on the customer’s shopping history. “I can see it nudging you, saying: ‘look, I’ve noticed over time that in your shopping basket your sodium salt content is 250% of your daily recommended allowance. I would recommend you substitute this, this and this for lower sodium products to improve your heart health’,” Murphy elucidated.
These AI-driven recommendations are intended to provide a more streamlined and thoughtful shopping process for consumers, making it easier to manage both financial and health-related aspects of grocery shopping. As articulated by Murphy, such initiatives represent “very simple stuff”, reflecting a desire to simplify decision-making for the average shopper.
By implementing AI technology, Tesco expects to not only enhance consumer satisfaction but also foster a sense of trust as shoppers perceive personalised care and advice. This forward-looking approach could potentially set a precedent in the retail sector for the use of technology in customer engagement and value delivery.
Tesco’s proposed AI enhancements promise to refine consumer shopping experiences, focusing on health and cost efficiency.
