Tech Explained: Tesco Mistral tie up proves that retail AI success lies in focusing on everyday workflows — Retail Technology Innovation Hub in Simple Terms

Retail AI isn’t failing because of technology, but rather because of integration. So says Elliott Johnson, Founder at EKB Labs.

He was speaking in reaction to Tesco inking a three-year agreement with French startup Mistral AI, as part of a broader strategy to bolster the use of AI in the UK grocery giant’s operations.

The partnership will give Tesco full access to the AI company’s commercial models, including any future developments, as well as its AI engineers. It includes a commitment for the two companies to 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.

The tie up will look at a range of areas, including content development and document drafting; speeding up data analysis to provide richer insights for colleagues; and developing new ways for colleagues to easily access information which they can use to help customers.

While competitors chase flashy AI demos, Tesco is focusing on embedding it into everyday workflows. That’s the difference between a pilot project and actual transformation, observes Johnson.

“In my enterprise AI consulting work, I’ve watched countless retailers burn millions on AI initiatives that never make it past the proof of concept stage. The breakthrough always comes when leadership stops asking, What can AI do? and starts asking, How does AI fit into what we already do well?” he says.

“Tesco gets it – three years isn’t just a contract timeline, it’s a commitment to systematic integration. Most retailers want AI magic in 90 days. The smart ones plan for 90 weeks. The real question: Are you building AI solutions that require your team to change everything, or are you building AI that amplifies what they’re already great at?”