January 02, 2026
Tesco Plans Customer Experience Boost With New AI Partnership
Tesco has been on a major customer experience push in recent years, working with a range of partners, like Eagle AI, to deliver new experiences in-store, online and for Clubcard shoppers.
Having doubled the size of its technology team over five years to capture the huge potential for new technology and improve customer experience. The next phase is a major investment in AI.
Tesco has inked a multi-year deal with French start-up Mistral AI. It will form part of a broader strategy to bolster the use of artificial intelligence across the retailer’s operations.
Mistral was in the news recently as a high-impact AI startup. It produces $85.7K per employee, showing competitive efficiency with a team of 350 people and revenue of £30 million, according to TRG Datacentre insights.
The Tesco CX-AI Mission
The partnership gives Tesco full access to Mistral AI’s commercial models, including any future developments, as well as its AI engineers. They will 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 focuses on improving the experience for its customers, colleagues and suppliers, while boosting wider operations.
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.
AI also helps with complex demand forecasting to ensure great product availability, and allows the retailer to engage with customers in an increasingly personalised way through Tesco Clubcard.
Mistral’s Wind of AI Change
Mistral AI is a European leader in building large language models, and Tesco is the first major UK retailer to strike a partnership with it, 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.
Summing up the deal, Tesco’s 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 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, like most retailers, has masses of data at its disposal. But the company is challenged to deliver timely insights that result in added value for customers, and more efficient supply and in-store operations. AI will help in this endeavour, but we wait to see the extent of quick wins and long-term strategic gains.
