Tesco is a build house at present but moving to a hybrid model
As AI is advancing so quickly, Tesco is adapting its successful internal build out technology model, which it has favoured to date to help it integrate technology properly into its business.
“We need to recognise that pace of development,” said Murphy, while explaining that at the moment: “Tesco is a build house, not a buy house.”
“We’ve got 5,000 people in technology roles and add 300 per year. This works for us because it ensures seamless technology deployment but there are drawbacks in that it is slower to implement new innovations. But it is more integrated. We have to find a hybrid model for the future.”
In regard to the impact on jobs of AI, Murphy argued that it would be negligible because most of the economy has already moved from a production-based one towards a more customer facing services and retail focused economy.
“We’ve got over 300,000 people in our shops and they’re not going to be replaced,” he said. “AI will do the mundane tasks better and allow them to be redeployed.”
Additionally, AI will also, of course, help to make businesses’ data much more valuable and capable of being personalised in future, as in the example of Tesco’s Clubcard plans.
We truly are at an inflexion point for the retail industry and at the beginning of a revolution.
2024 RTIH INNOVATION AWARDS
AI is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.
The awards, sponsored by CADS, 3D Cloud, Retail Technology Show 2025, and Business France, celebrate global tech innovation in a fast moving omnichannel world.
It’s free to enter and you can do so across multiple categories.
Key 2024 dates
Friday, 25th October: Award entry deadline
Tuesday, 29th October: 2024 shortlist revealed
30th October-6th November: Judging days
Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.
