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Tesco, the UK’s biggest supermarket chain, is expanding its use of AI and integrating it within the company’s Clubcard loyalty scheme.
The Clubcard program is already used by millions of people offering store discounts and rewards. Tesco’s CEO Ken Murphy at FT’s Future of Retail Summit revealed how this could benefit customers.
According to the executive, AI within Clubcards would ‘nudge’ the shopper when certain items in their shopping basket go beyond their daily dietary requirements. It would then suggest an alternative for the item enabling the shopper to keep track and make a healthier choice.
The new tech is also said to elevate the shopping experiences by notifying buyers about discounts which they may be unaware of. The AI could also reduce shopping bills, waste, and utilize the increased power of the Clubcard to make customers’ lives easier.
Murphy acknowledges that the retailer’s plans to utilize AI would include capturing significant customer data. This would undoubtedly raise privacy concerns. The executive mentioned that he doesn’t mind giving up his own data as a consumer if he gets the right kind of experience in return.
🛒💳 Supermarket loyalty cards. A thread.
In recent months supermarkets have been pushing us to sign up to these things. At Tesco 80% of all purchases are made using a Clubcard.
Why are supermarkets so keen? Data. Of course. But something new is happening 1/🧵 pic.twitter.com/gWF0Q3yDvc— Harry Wallop (@hwallop) December 10, 2023
Tesco’s plans have sparked debate online with views differing on whether giving away your personal data in exchange for a more personalized shopping experience is a trade-off worth making.
