John Lewis, the renowned British retailer, has struck a groundbreaking £100 million deal with Google to embrace artificial intelligence (AI) and enhance customer service. The partnership aims to transform the company’s operations, including reducing data storage expenses and improving efficiency.
Among the developments, John Lewis plans to introduce AI-powered customer service bots and augmented reality services that allow customers to virtually place and adjust interior designs using their devices. By leveraging AI technology, the retailer aims to reduce costs associated with hiring third-party software developers and enhance the overall customer experience.
Zak Mian, the Chief Technology Officer of John Lewis, emphasized that this move towards AI transformation does not entail job cuts or store closures. Instead, the objective is to increase productivity and provide more personalized offerings to customers. Mian stated, There’s nothing like laying on a mattress or sitting on a sofa in the shop—it’s about weaving technology and expert partners together.
The partnership with Google not only brings commercial benefits but also offers opportunities for innovation and broader transformation. John Lewis aims to leverage AI to analyze the vast amount of customer data it collects, enabling the company to deliver more timely, relevant, and personalized offers. Nish Kankiwala, the CEO of the John Lewis Partnership, highlighted the importance of building a technology infrastructure to benefit customers in the long term.
Despite the ambitious plans for AI integration, John Lewis remains sensitive to customer preferences and is cautious about completely automating operations. Mian acknowledged that some customers value the personal service provided by physical counters, such as those for fish, meat, and cheese. The company recognizes the significance of maintaining a balance between technology and human assistance in delivering an exceptional shopping experience.
This partnership between John Lewis and Google comes as the retailer faces pressure to recover from a £234 million loss in the past year, which resulted in the cancellation of the staff annual bonus. By adopting AI technology, John Lewis aims to optimize its operations, drive innovation, and regain financial stability.
In summary, the £100 million deal between John Lewis and Google marks a significant step towards AI transformation and enhanced customer service. The retailer’s integration of AI-powered solutions, including customer service bots and augmented reality services, aims to reduce costs, improve productivity, and deliver more personalized offers. While focusing on technological advancements, John Lewis remains attentive to customer preferences and the importance of maintaining a balance between technology and human assistance in the shopping experience.
