Coles delivers hyper-personalized retail experiences and boosts efficiency with AI and Copilot
Coles Group, an Australian retail leader, has partnered with Microsoft on a strategic five-year digital transformation journey. The initiative seeks to modernize Coles' IT estate, increase operational efficiency, and enhance customer experience through Microsoft Fabric, Azure OpenAI, Azure ML, and Copilot agents. A core component is an AI-as-a-Service platform enabling rapid, secure rollout of AI use cases—including 'Tell Coles', a generative AI tool for analyzing customer feedback and sharing insights with store managers. Coles also employs Microsoft Fabric at the center of its digital data platform to deliver real-time, personalized recommendations for customers on all channels. Intelligent Edge Backbone (IEB) technology supports IoT-enabled supply chain advances and in-store machine learning, reducing stock loss and advancing sustainability goals. Additional tools, such as Power Apps and Copilot, boost productivity for staff and help modernize business processes. The co-innovation has enabled Coles to handle massive data volumes, democratize analytics, and use Power BI for targeted reporting—helping management make smarter, faster decisions. Coles measures success in improved customer sentiment, efficiency gains, reduced losses, and deeper customer engagement—all while advancing sustainability.
Reported outcomes
Strategic outcomes
Why do we believe this deployment?Customer identity, provider attribution, maturity, and source checks
- Customer
- Coles
- Provider
- Microsoft
- Maturity
- Production
- Linked source
- news.microsoft.com
The initiative seeks to modernize Coles' IT estate, increase operational efficiency, and enhance customer experience through Microsoft Fabric, Azure OpenAI, Azure ML, and Copilot agents
Primary read
Use case focus
Showing 3 of 4
- 1Personalized Shopping Recommendations with Azure OpenAI
- 2Store Operations Productivity Boost with Copilot
- 3Real-Time Sentiment Analysis and Customer Feedback Routing
- Demand for hyper-personalized digital customer experiences in retail.
- Need to improve operational efficiency and productivity in stores and supply chain.
- Desire to extract actionable insights from large, varied customer and operational data.
- Pressure to achieve sustainability targets and reduce stock loss.
- Strategic partnership with Microsoft to co-innovate digital retail solutions.
- Implemented Azure OpenAI, Copilot, and Microsoft Fabric to enhance personalization and analytics capabilities.
- Deployed IoT and edge computing backbone (IEB) to power in-store automation and optimize logistics.
- Used Power Apps to simplify and digitize tools for store teams and business units.
- Faster delivery of personalized digital recommendations for shoppers.
- Reduced stock loss and improved safety and productivity for frontline teams.
- More targeted, actionable customer feedback for ongoing service improvement.
- Deeper customer loyalty, engagement, and sustainability results.
Architecture
Coles' digital transformation integrates Azure OpenAI and Microsoft Fabric as the center of its data platform. AI-as-a-Service underpins customer sentiment analysis and personalization, running on Azure. Edge computing (IEB) coordinates IoT across the supply chain and in stores, feeding machine learning algorithms for loss reduction. Power Apps and Copilot deliver real-time insights to staff. Data is democratized with Power BI for business reporting. All backbone systems are hosted on Microsoft's cloud.
Sources & evidence1
- Customer explicitly identified
- Deployment status explicitly supported
- Independent source available
- Technical implementation details available
The same organization appears in newer AI deployment evidence.
- Same organization re-documented as recently as 2025.
Measures whether this deployment's public evidence persists — not whether the system is still in production.
AI-generated summary. Verify important details with the linked sources before relying on this case.
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