Morrisons credits AI and data push for £940m in savings

TL;DR:

• Morrisons chief executive Rami Baitiéh says greater use of data and AI has helped deliver £940m in savings over three years.
• He attributes the result to pairing “bottom-up” investment in grassroots ideas with a “top-down” educational strategy.
• The savings are being reinvested into stores and digital capabilities as part of the grocer’s turnaround.

Morrisons has put a hard number on its AI efforts, with chief executive Rami Baitiéh saying expanded use of data and artificial intelligence helped deliver £940m in savings over the past three years. The grocer announced earlier this year it would ramp up data, automation and AI as part of a cost-cutting drive that included job losses at its Bradford head office.

Outcomes over hype

Writing on LinkedIn, Baitiéh drew a pointed contrast with rivals, noting many businesses invest heavily in AI “but often without a clear, genuine outcome”. Morrisons, he said, had taken a different route by pairing “a bottom-up investment strategy with a top-down educational strategy” — funding practical grassroots ideas while equipping teams with the knowledge to use the tools well. The “tech-driven vision”, he added, had “materially contributed to the delivery of £940m over the last three years, all without compromising our customer experience”.

The savings are being reinvested into the store estate and digital capabilities, with Baitiéh highlighting personalised retail media, accurate stock tracking and competitive pricing as the “ultimate keys to success” for bricks-and-mortar retailers. The update comes as Morrisons works to rebuild momentum under Baitiéh, who joined in 2023, after a difficult stretch following its £7bn takeover by Clayton, Dubilier & Rice in 2021.

Looking forward

Concrete, attributable returns remain rare in corporate AI announcements, where vague promises of “transformation” are the norm. Morrisons’ framing — measurable savings tied to a deliberate investment-and-education model, and a refusal to chase AI without a defined outcome — offers UK businesses a more grounded template than the technology-first pitches that dominate the sector. Whether the £940m figure withstands closer scrutiny will matter, but the emphasis on results over rhetoric is a welcome shift.