Today’s business environment demands more with less. Organizations must deliver better personalization, higher volume, and increasingly complex insights while operating with greater efficiency. The gap between stakeholder expectations and what teams can realistically deliver continues to widen. 

Microsoft’s recent insights on Frontier Transformation address these challenges by embedding AI into the core of operations. Frontier Firms are organizations that treat AI as a foundational capability and are already transforming how they work. 

Frontier Firms don’t simply automate; they adapt. By adding adaptive intelligence to existing systems, they unlock three advantages: 

• Awareness: Systems perceive conditions in real time. 
• Reasoning: They prioritize tasks based on business needs. 
• Interaction: They communicate in natural, intuitive ways. 

Early adopters see small improvements compound quickly. These include faster service, more accurate recommendations, fewer equipment surprises, and clearer insights into peak times and bottlenecks. As agentic AI matures, companies can offer guidance and assistance that feels intuitive. Employees gain more time for high-value work, and leaders gain deeper visibility into operations. 

Frontier Transformation is more than a technology upgrade. It represents a shift in operating model. Organizations that treat AI as a foundation will lead the next wave of business innovation. 

Agentic AI is reshaping customer experience 

This shift is already visible in retail, where agentic robots are transforming customer experience and improving operational performance. Customers expect fast, personalized service, yet retailers often face staffing constraints, training gaps, and unpredictable demand. 

Industry studies show: 

• 75% of consumers are more likely to purchase when recommendations feel relevant. 
• Nearly 40% of in-store complaints relate to wait times. 
• Inventory inaccuracies account for 4–8% of lost sales. 

These challenges reflect a broader pattern across frontline-heavy industries. Customer expectations continue to rise, and employee workloads grow more complex. 

Microsoft’s Work Trend Index reinforces this dynamic. Frontline employees say AI tools that reduce repetitive tasks, surface real-time information, and streamline customer interactions have the biggest impact on satisfaction and performance. As organizations integrate adaptive intelligence into daily workflows, these benefits build on each other and help accelerate Frontier Transformation. 

Recent industry research shows that retail and consumer packaged goods organizations are generating significant business value from generative and agentic AI, with early deployments consistently delivering multi-times ROI and accelerating impact across frontline operations.

Agentic AI creates new possibilities for stores. Instead of relying on rigid automation, it blends environmental awareness, adaptive reasoning, and conversational interaction to help teams respond in real time. 

ADAM: From beverage service to customer care 

Richtech Robotics’ ADAM beverage robot illustrates how quickly agentic systems can enhance the customer experience. Richtech, based in Las Vegas, designs and commercializes autonomous robotic solutions for hospitality, retail, logistics, and manufacturing. Through a close, hands-on collaboration between Richtech’s engineering team and the Microsoft AI Co-Innovation Labs, the two companies jointly developed new adaptive intelligence for ADAM—transforming it into a conversational, context-aware assistant powered by Microsoft Azure AI. These enhancements enabled ADAM to move beyond routine beverage preparation and support richer customer interactions.

Today, ADAM: 

• Adjusts recommendations based on weather, time of day, and promotions. 
• Responds naturally to customer requests like “less sweet,” “extra ice,” or “what’s seasonal?” 
• Notifies staff about ingredient or equipment issues before problems occur. 
• Uses vision models to maintain speed and quality during busy periods. 

Retailers report smoother operations and better customer feedback. ADAM is context aware, conversational, and reliable—qualities customers consistently reward and areas where AI has historically struggled. 

While ADAM is a retail example, the pattern extends far beyond beverage automation. Across logistics, healthcare, hospitality, and manufacturing, Frontier Firms are adding ambient intelligence and agentic workflows to physical operations and seeing meaningful gains as a result. 

Unlocking retail transformation at scale 

Once retailers see how intelligence enhances a single customer interaction, the next question naturally follows: where else can this help? Building on the advancements made with ADAM, Richtech Robotics is extending these capabilities through its Agentic Store initiative. By applying vision, voice, and agentic reasoning to common in-store tasks, the initiative helps retailers address friction points that slow down the shopping experience. 

Examples under development include: 

• Robots that guide customers to products.
• Systems that detect empty shelves or misplaced items.
• Voice-enabled, in-aisle assistance.
• Real-time adjustments based on foot traffic or local events.

This approach does not require heavy hardware investments. These workflows are software-driven and build on existing store infrastructure. It reflects how Frontier Firms drive transformation by spreading intelligence across the ecosystem rather than upgrading a single process at a time. 

Retailers gain clearer visibility into peak demand, customer behavior, product movement, and service quality without increasing manual tracking. As one store manager described it, “it feels like having a second set of eyes that never gets tired.” 

Convenient, high-quality service becomes a blueprint for store-wide intelligence. In the coming years, a clear difference will emerge between retailers that treat AI as a tool and those that treat it as a foundation. The latter will set the pace for the industry. 

Steps toward Frontier Transformation 

Agentic AI gives retailers a practical and achievable path forward. It elevates customer experience, reduces operational strain, and creates the foundation for smarter and more adaptive stores. Organizations that embrace Frontier Transformation position themselves as Frontier Firms, ready to scale faster, work more intelligently, and unlock new value through the combination of human judgment and AI-driven insight. 

The journey begins with small, strategic steps and a bold vision for what is possible. To explore the broader business impact of AI across frontline and customer-facing roles, review Microsoft’s Work Trend Index: The year the Frontier Firm is born.

Explore how organizations are transforming with AI, and learn how you can build your own generative AI proof of concept with the Microsoft AI Co-Innovation Labs.

The post Frontier Transformation in retail: How agentic AI robots are redefining store experiences appeared first on The Microsoft Cloud Blog.

But behind these numbers are the real stories—organizations that have moved beyond experimentation to embed AI at the heart of how they operate. These “AI Challengers”—bold, AI-first businesses that are not just adapting to change but actively challenging the status quo and shaping the future.

These AI challengers haven’t just implemented new tools—they’ve reimagined what’s possible when AI becomes a core business capability. Find out how these companies are pulling ahead:

BOQ Group—Human-led transformation for banking reimagined

BOQ Group champions an employee and customer first approach to AI transformation. “At BOQ Group, we are committed to transforming the way we work and serve our customers by building an AI-ready workforce,” explains Chief Information Officer Craig Ryman.

The bank’s strategic rollout of Microsoft 365 Copilot delivered extraordinary results: over 70% of users now save 30 to 60 minutes each day. The impact extends far beyond time savings—completing business risk reviews in one day instead of three weeks, creating training programs in one day instead of three weeks, and improving report quality while speeding up sign-off processes from four weeks to one week.

BOQ’s approach emphasizes the critical insight that having a “human in the loop” is critical to AI adoption. The organization’s experience reveals universal adoption phases: users start with personal productivity gains, then focus on targeted opportunities, before ultimately transforming how work gets done entirely.

AI transformation is not just a technological transformation but a people-led transformation changing how we work. This is why it’s critical that any AI transformation starts by listening to and understanding team needs, spotting opportunities, and tackling challenges head-on to embrace the opportunities.

Enveda—Cracking the chemical code of life with AI

Enveda is innovating with AI by reinventing what is possible in medicine. It is focused on revolutionizing drug discovery by unlocking the potential of the vast majority of undiscovered molecules in nature. Enveda is using generative AI to identify and analyze thousands of compounds simultaneously, which significantly speeds up the drug development process and reduces costs.

“Today, nine out of ten drug candidates don’t make it through clinical trials, despite years of research and massive investment. This 90% failure rate pushes the cost of bringing a single new medicine to market as high as $6 billion. It’s an approach that simply can’t scale,” states CEO and Founder Viswa Colluru. 

At Enveda, AI is changing that. By decoding nature’s chemistry at scale, it is delivering drug candidates to clinical trials four times faster and at nearly one-tenth the cost.

AvePoint—Using AI to transform business inside and out

AvePoint is driving business innovation by embedding AI-powered capabilities into its product suite with Copilot. AvePoint also demonstrates the power of being your own best customer with its internal AI adoption. 95% of pilot participants actively use Copilot, with employees saving one to three hours per week by automating repetitive tasks, allowing them to focus on higher-value work.

As Mario Carvajal, Chief Strategy and Marketing Officer, noted, “Our investors care about efficiency, and AI is helping us deliver that. By freeing up time for higher-value work, we’re making our teams more effective and our business more competitive.” 

To accelerate adoption, AvePoint had two key strategies: upskilling its employees and creating focused, department-specific initiatives. AvePoint also encouraged a dialogue that sparked curiosity, built confidence and helped AI become a natural part of its daily workflows. As AI continues to evolve, AvePoint is positioned to lead the way, proving that the right foundation is key to unlocking its full potential. 

Eaton—Revolutionizing its energy management using AI

Eaton showcases how industrial companies use AI across complex global operations. “AI offers limitless potential for innovation, providing transformative technical opportunities that align with our growth objectives and advance our mission for sustainability and energy resilience by supporting grid flexibility, enhancing energy management, and delivering superior service and outcomes for our customers.,” explains Executive Vice President and Chief Information Officer Katrina Redmond. 

The company’s implementation of Copilot specialized agents brings functional expertise to areas like finance, sales, human resources, and service, handling repetitive, mundane tasks and freeing teams to focus on higher-value, strategic work that enables them to better serve their customers. By embedding AI into its culture and adopting a “think AI first” mindset, Eaton aims to drive further advancements in both technology, organizational strategy and will ensure that it can fully harness AI’s immediate potential while fostering sustained innovation across all aspects of its business.

The agent-enabled workplace

Each organization is driving innovation and demonstrates different aspects of the agent-enabled workplace—environments where AI agents work alongside human teams to accomplish complex business objectives, but all point toward a future where intelligent systems amplify human potential. 

Their success reinforces a critical insight: AI transformation requires more than technology adoption. It demands fundamental rethinking of business processes and competitive strategies. The organizations that recognize this—and act boldly on it—will define the next decade of business innovation. The future is here—and it’s time to claim your place in it. Will you lead or follow? 

Ready to join the AI challengers?

Explore how Microsoft’s AI solutions can transform your organization. Connect with our team to discuss your AI strategy or watch detailed case studies featuring each of these remarkable organizations.

Find the resources to support your AI journey:  

• Explore Microsoft’s AI solutions.
• Advance your AI transformation with AI business resources.
• View more AI Challengers executive insights.
• Listen to the Leading the Shift podcast to hear advice from leaders navigating the AI platform shift.

AI business resources

Help your organization achieve its transformation goals with expert insights and guidance.

Learn more

¹ IDC 2025 Worldwide CEO Survey — Part 1: Overarching Insights, Business Priorities, and Risks, doc #US53155225, April 2025

² IDC, 2025 CEO Signature Report: Transforming Business for an AI World, doc #US53393625, June 2025

The post AI-powered innovation: How leading organizations are shaping the future appeared first on The Microsoft Cloud Blog.

South Korea is rapidly establishing itself as a global force in AI innovation, propelled by a unique blend of industrial strength, technological ambition, and cultural adaptability. From healthcare to renewable energy, Korean organizations are actively deploying AI to reimagine systems, improve efficiency, and create entirely new value.

This nationwide momentum is supported by a growing ecosystem of partners with investments in infrastructure, cloud platforms, and nationwide skilling. Microsoft is expanding access to AI and strengthening Korea’s long-term digital resilience via partnerships with Korean enterprises and institutions, supporting responsible and scalable adoption grounded in transparency, security, and fairness.

At the Microsoft AI Tour in Seoul, Korean companies demonstrated how AI is moving beyond efficiency gains to become a true growth engine—reshaping customer experiences, opening new markets, and driving cross-industry collaboration for a more innovative, inclusive future.

KT accelerates AI transformation through strategic Microsoft partnership

KT, one of South Korea’s largest telecommunications and digital services companies, is driving large-scale AI and cloud. As part of its enterprise transformation, KT has deployed Microsoft 365 Copilot company-wide, using AI to streamline operations and enhance workplace efficiency. In collaboration with Microsoft, their dedicated Center of Excellence (CoE) supports the development of AI-powered systems across teams.

To meet the needs of highly regulated industries, KT is building a secure public cloud based on Microsoft Cloud for Sovereignty. This infrastructure will support scalable, compliant AI adoption in sectors such as public services and finance.

Meanwhile, KT is also developing a large language model (LLM) optimized for the Korean language and cultural context. The model will be embedded into KT’s customer service to deliver next-generation AI experiences.

To promote broad, inclusive workforce development, the company is launching a nationwide AI skilling initiative with new training centers that will equip university students, professionals, and the general public with practical AI knowledge. With this multifaceted strategy, KT is advancing its digital capabilities and enabling AI innovation across Korea’s public and private sectors.

LG Electronics launches AI-powered home robot Q9

LG Electronics, a global leader in consumer electronics and smart home technology, is expanding the role of AI in daily life with the introduction of its AI home robot Q9, developed using Azure OpenAI Service. Designed to go beyond basic smart appliance control, Q9 supports functions such as elderly care, childcare, and overall home management.

The robot integrates Microsoft’s voice AI with LG’s own AI agent FURON to allow natural user interactions and adaptive learning. It serves as a central AI hub, connecting with and coordinating smart devices throughout the home to create a responsive living environment tailored to individual needs.

Q9 reflects LG’s vision for the smart home as an active, AI-powered ecosystem that enhances convenience, comfort, and support for daily routines. By combining conversational AI with practical applications, LG is shaping a new category of home technology focused on human-centered design.

Seegene advances molecular diagnostic development with AI system

Seegene, a leading biotechnology and molecular diagnostics company based in South Korea, is transforming how PCR testing kits are developed with its AI-powered Seegene Digitalized Development System (SGDDS).

Originally created by Seegene and further advanced in partnership with Microsoft, SGDDS automates the critical planning and design stages of PCR testing kit development—steps that have traditionally required large teams of experts. By streamlining these processes, the platform enables even non-specialists to participate, accelerating research timelines and improving development efficiency.

Powered by AI and data analytics, SGDDS helps standardize and simplify the development process, allowing Seegene to respond more quickly and precisely to emerging health threats. This capability expands access to accurate diagnostics and strengthens global preparedness for future public health challenges.

Through the integration of AI into its core research and development (R&D) operations, Seegene is building a more agile and scalable approach to healthcare innovation. Its collaboration with Microsoft also supports broader technology-sharing efforts designed to improve diagnostic infrastructure across global markets.

Hanwha Qcells optimizes solar energy with AI and IoT

Hanwha Qcells, a global leader in solar energy solutions, is advancing smart energy management by integrating Azure OpenAI Service and Internet of Things (IoT) technology. In response to the urgent challenges of climate change and resource depletion, the company is using AI to optimize solar power usage and enhance system efficiency across its operations.

By combining real-time data from IoT devices with AI-powered analytics, Hanwha Qcells is developing intelligent energy strategies that improve performance and support sustainability goals. The AI models help forecast energy needs, identify inefficiencies, and adjust power usage dynamically—laying the groundwork for more resilient and eco-friendly infrastructure.

Through its collaboration with Microsoft, Hanwha Qcells is not only improving operational efficiency but also creating scalable solutions for the global energy transition. These innovations support the development of clean energy ecosystems while opening new business opportunities in an increasingly AI-powered market.

Galaxy Corporation uses AI to transform creative enter-tech content

Galaxy Corporation, a South Korea–based AI enter-tech company, is reshaping digital content creation with Sora, its proprietary AI platform powered by Azure OpenAI Service. Designed to support creative professionals, Sora applies generative AI to assist in content development across video, animation, and other entertainment formats.

By embedding AI into the creative workflow, Galaxy Corporation is expanding the role of technology as an active partner in idea generation and production. Sora enables faster prototyping, helps refine concepts, and introduces new possibilities for immersive storytelling—bringing imagination to life with greater speed and scale.

Galaxy Corporation plans to continue expanding its AI offerings to meet the growing demand for innovation in entertainment. Galaxy Corporation is deeply committed to exploring the possibilities of the enter-tech creative vision of artists in this era of rapid innovation. By using AI to overcome creative limitations and redefine the standards of content development, the company is fostering a dynamic synergy between entertainment and AI technology. By positioning AI as a core creative tool, this approach not only reimagines experiences entirely but also delivers transformative content value to audiences, paving the way for a more meaningful, dynamic, and forward-thinking future in content creation.

Amorepacific simplifies complex beauty decision with AI

Amorepacific, South Korea’s largest beauty and cosmetics company, is known for its trend-setting brands and deep understanding of consumer needs. In the fast-moving K-beauty market—where skincare routines are complex and trends shift quickly—delivering timely, personalized guidance has become both a challenge and a competitive advantage.

To meet that need, Amorepacific is developing the AI Beauty Counselor (AIBC), a generative AI-powered app built on Microsoft’s Azure AI stack. The solution analyzes user photos to assess facial features and skin tone, then offers makeup recommendations informed by data from professional artists. To deepen personalization, users can chat with AIBC to share their skin care concerns, ask questions, and report on their post-sale experience.

By integrating AI into the consultation experience, Amorepacific is helping customers navigate beauty choices with confidence while staying ahead of evolving trends.

AI for everyone in South Korea

What sets South Korea apart in the global AI landscape is not only its rapid adoption of new technologies, but its intentional, people-centered approach to applying them. Korean enterprises are using AI to address real-world challenges, and these innovations are rooted in Korea’s industrial expertise and cultural context, with AI deployed to create practical value across sectors.

Aligned with the theme “AI for Everyone,” South Korea’s AI transformation reflects a belief that this technology should be accessible, inclusive, and impactful across all sectors of society. Microsoft supports this vision through close collaboration with Korean institutions and businesses—advancing skilling initiatives, education programs, and trusted cloud infrastructure to help turn bold ideas into lasting results.

Meanwhile, as AI becomes central to how organizations compete and collaborate, trust is essential. Microsoft’s focus on ethical development, responsible deployment, and secure systems enables Korean companies to build AI solutions that are not only powerful but grounded in both innovation and social responsibility.

South Korea’s AI momentum is accelerating, crossing boundaries between industries, strengthening competitiveness, and opening space for new partnerships. With the right foundation and a clear commitment to inclusion, responsibility, and innovation, the country is showing what a truly accessible, future-ready AI ecosystem can look like—for everyone.

Find the resources to support your AI journey

• Explore Microsoft’s AI solutions.
• Advance your AI transformation with AI business resources.

The post How South Korea is building an AI-powered future for everyone appeared first on The Microsoft Cloud Blog.

The United Kingdom (UK) is on the brink of a half-a-trillion-pound opportunity, powered by AI and cloud technologies that are set to transform industries, boost productivity, and redefine the way we work. As Europe’s most advanced digital economy, home to 171 unicorns worth more than £800 billion, the UK has already proven its appetite for innovation, investing more than £20 billion in AI since 2016. But realizing AI’s full potential isn’t just about investment, it’s about action.

AI is no longer a distant concept. Businesses across every sector are already embedding AI-powered agents into their operations—automating workflows, streamlining decision-making, and eliminating digital drudgery to free employees for more impactful work. The rise of agentic AI—technology that doesn’t just respond to commands but takes action on our behalf—marks a major shift, poised to revolutionize everything from customer service to cybersecurity, driving efficiency, resilience, and innovation at scale.

And yet, a stark AI divide is emerging. More than half of UK organizations still lack a formal AI strategy, and 57% of business leaders report a growing gap in productivity between AI adopters and non-adopters. With employees and leaders already stretched thin, the demand for AI-powered solutions has never been more pressing.

The question is no longer whether AI will reshape the UK economy, but how quickly businesses will step up to seize the opportunity. Organizations that act decisively—building clear AI strategies and investing in the right capabilities—will be the ones that thrive. I highlighted several of these leading organizations during my AI Tour keynote, and I’m excited to share more of their journeys here. 

Pets at Home reimagines integrated pet care with AI

Pets at Home, the UK’s largest pet care company, is transforming its operations with AI agents powered by Microsoft Copilot Studio. The company, which includes 450 retail stores, an online platform, veterinary practices, and grooming services, initially operated in silos but underwent a digital transformation to unify the customer experience across all channels using Microsoft Azure.

With a centralized data platform in place, Pets at Home turned to AI to enhance efficiency. One of the first AI agents supported fraud detection, swiftly analyzing vast amounts of data to identify suspicious transactions, such as repeated use of the same image for fraudulent refund claims. This has significantly improved fraud investigation speed and accuracy.

AI is also powering personalized customer interactions. With 8 million loyalty program members and 10 million pets, the company uses machine learning to recommend tailored pet care solutions across its retail, veterinary, and grooming services. This ensures customers receive relevant, stage-specific pet care guidance.

The company’s veterinary practices are using AI to reduce administrative tasks, allowing clinicians to focus more on patient care. AI-powered transcription services assist during consultations and operations, while scheduling automation improves efficiency, enhancing clinical focus, and aligning with the company’s mission of better pet care.

By integrating AI agents, Pets at Home has enhanced fraud detection, improved personalization, and streamlined veterinary operations, driving innovation and efficiency across its ecosystem.

Amey embraces AI agents for a safer, more connected workforce

Amey, a UK-based engineering firm, plays a vital role in designing, maintaining, operating, and building the country’s infrastructure. With services impacting 75% of the UK population daily, ensuring safety and efficiency is a top priority.

Access to safety information has long been a challenge for frontline workers, who previously had to stop tasks and manually sift through folders full of paper documents for relevant details. Without regular access to laptops or computers, Amey opted to democratize information access for its workforce with mobile-friendly AI-powered agents.

Now, 99% of its 118 million files are stored on SharePoint, and AI allows employees to retrieve answers instantly through a chat interface. No more digging through folders—critical safety information is now just a few taps away, preventing issues and resolving others faster.

The AI system boosts efficiency and safety by providing instant access to essential information, real-time troubleshooting, and multilingual support while maintaining English documentation. By filling gaps where supervisors aren’t always available, it reduces risks and empowers employees to work more confidently and get home safely every day.

With AI now embedded in everyday operations, Amey is setting new standards for workplace safety and efficiency, proving that technology is a powerful ally in protecting and empowering its workforce.

Nationwide streamlines operations and cuts response times with generative AI

Nationwide, the world’s largest building society, serves 17 million customers across more than 600 UK branches. After merging with around 250 smaller societies, it faced a tangled web of data. By applying Microsoft Azure, Azure Databricks, and Teradata’s VantageCloud, it streamlined everything into a powerful, centralized platform, empowering employees to access a complete view of customer needs in seconds, delivering faster, more personalized service with greater efficiency.

Nationwide has built upon that infrastructure by integrating GPT-4 within Azure OpenAI Service to augment various business functions. One of the most impactful applications has been in customer correspondence, where AI-generated letters have reduced response times from 45 minutes to approximately 10–15 minutes, a 66% improvement in efficiency. AI has also been deployed to automate routine back-office tasks, allowing employees to focus on addressing more complex customer inquiries and improving overall service quality, which reflects Nationwide’s philosophy of using AI as a “copilot” to assist employees rather than as an “autopilot” to replace them.

Nationwide has established an AI Centre of Expertise and an AI Council to oversee responsible AI use, ensuring transparency and responsible standards in collaboration with Microsoft. This framework builds customer trust while guiding the expansion of AI into contact center operations, credit risk assessment, economic crime monitoring, its virtual assistant Arti, and CO₂ emissions reporting.

Be My Eyes puts AI into the hands of blind and low-vision individuals

Be My Eyes has long connected blind and low-vision people with sighted volunteers and partner companies through live video assistance. Now, with AI, it’s radically improving accessibility. In collaboration with Microsoft, Be My Eyes is making AI models more inclusive for the 340 million people worldwide with no or low vision by integrating accessibility data to serve diverse needs better.

A key innovation is Be My AI, a tool that helps users independently navigate their digital world by providing AI-powered descriptions of on-screen content. Part of Be My Eyes for Windows, Be My AI makes it easier to browse websites, use applications, or read documents. It also provides descriptions of locally stored images, offering clarity on personal photos and saved graphics. Online images can be analyzed simply by copying them to the clipboard for a detailed text description. The tool even helps users prepare for video calls by checking if they are centered in the frame and describing their background before going live.

An interactive chatbot allows users to ask follow-up questions about descriptions for a more dynamic and personalized experience. While the app is still in beta, ongoing improvements and new features will continue to expand its capabilities, allowing Be My Eyes to improve accessibility and redefine independence for blind and low-vision people.

Virgin Money’s virtual assistant is “Redi” to transform customer service

Virgin Money, serving 6.6 million retail and business banking customers, sought to enhance digital customer experience by developing “Redi,” an award-winning virtual assistant. Built using Microsoft Copilot Studio and integrated with Dynamics 365 Customer Service, Redi bridges the gap between digital adoption and customer confidence.

Developed in close collaboration with frontline contact center staff and seamlessly integrated with the Dynamics 365 Knowledge Base, Redi features an intuitive digital journey that provides customers with timely and effective assistance. A core value to the company, the virtual assistant maintains Virgin Money’s distinctive brand voice, understanding colloquialisms and responding to informal language.

Virgin Money collaborated with compliance teams to ensure Redi’s interactions are clear and secure. The assistant introduces itself transparently and seamlessly transitions customers to human agents when handling complex issues, effectively triaging 90% of inquiries, boosting customer satisfaction ratings, and allowing contact center agents to focus on more complex tasks.

This strategic AI deployment exemplifies Virgin Money’s commitment to exceptional customer experience and recognition that the major role of agentic AI has in delivering that now and into the future.

AI for everyone in the UK: Decisive action

The UK’s AI journey has already been transformative, but the next era—powered by agentic AI—has the potential to be truly revolutionary. By and large, UK organizations recognize the competitive advantage AI has to offer, but have yet to fully unlock AI’s potential, citing barriers such as workforce readiness, strategic alignment, and regulatory uncertainty.

Overcoming these hurdles is challenging but certainly achievable. It requires investment not only in AI infrastructure but also in skills development. Microsoft has stepped in with full support for the UK economy, having made a multibillion-pound commitment to AI-enabled datacenters and bringing AI skills to an additional 1 million people by the end of this year, on top of the 1.5 million it has already given digital skills to.

This shared foundation is essential to putting the AI-powered economy within reach, but success will depend on how quickly and effectively businesses themselves take strategic steps to embrace AI. I posed these questions to those who attended the Microsoft AI Tour event in London, and I urge you to consider them as well: 

1. What are you trying to achieve in the next six months, and how can AI help you get there faster? 

2. How are you and your team set up to embrace the change, and what culture shifts are needed to ensure AI adoption is unencumbered? 
3. How can Microsoft and its partners be part of that journey? What do you need from us to accelerate your progress and deliver real outcomes? 

Together, we have the opportunity to shape an AI-powered future where businesses flourish, employees thrive, and the UK cements its position as a global leader in innovation. The time to act is now.

Find the resources to support your AI journey 

• Advance your AI transformation with AI business resources
• Microsoft Agents of Change
• ‘AI divide’ across UK organizations risks growth for many, new Microsoft research reveals

The post The UK’s opportunity to seize growth in the age of agentic AI appeared first on The Microsoft Cloud Blog.

Sydney, Australia, recently played hosts to the Microsoft AI Tour, bringing together innovators, industry leaders, and government representatives to reinforce the extraordinary opportunity AI represents for Australia and discuss how we can shape the future of the country’s AI economy.

Microsoft also launched the first New Zealand hyperscale cloud in Aotearoa with major sustainability and skilling investments. Microsoft signed a long-term renewable energy contract and will run the latest water-free technology to cool the datacenter. The cloud region offers local data residency, enhanced security, and reduced latency, empowering New Zealand to leverage technology more efficiently at an unprecedented scale. The opening of Microsoft’s hyperscale cloud region marks the most significant milestone in the company’s nearly 40-year history in New Zealand and brings unprecedented opportunities for local organizations. 

As captured in a recent IDC study, the business potential of AI continues to accelerate across the globe, with generative AI adoption surging from 55% in 2023 to 75% in 2024. Companies are seeing a remarkable $3.7 return on investment for every $1 spent on generative AI, with deployments delivering value faster than ever—often within 13 months.¹ Recognizing AI’s transformative power, organizations are rapidly advancing their strategies, shifting from pre-built solutions to sophisticated, custom-built AI workloads within two years—highlighting AI’s pivotal role in shaping the competitive edge of the future.

Despite this rapid growth, a lack of technical and practical AI skills remains the top barrier for Australia, highlighting the need for targeted skilling to unlock AI’s full potential. Australia’s government and business leaders are both committed to closing that gap, partnering with Microsoft to provide AI and digital skills training to 1 million Australians and New Zealanders by 2026.

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AI for everyone in Australia

As Australia emerges as a leader in the global AI economy, the nation’s strengths in applications, AI datacenters, and data position it to drive transformative growth across industries. The AI Tour highlighted that AI transformation is not just about technology—it’s a collaborative effort.

From redefining insurance through the Suncorp’s AI-powered customer support tools to advancing retail innovation with Coles’ AI-as-a-service platform and improving public safety through AI solutions with the Australian Federal Police, Australian organizations are leveraging AI to reshape how they operate and serve their communities.

Businesses, governments, educators, and not-for-profits must work together to ensure AI serves all Australians safely and responsibly. With the right focus on infrastructure, skills, security, and responsible AI, the possibilities are limitless.

Brisbane Catholic Education rolls out Microsoft 365 Copilot to 12,500 educators

Brisbane Catholic Education (BCE) has announced the world’s largest generative AI rollout in kindergarten through twelfth grade education, with a plan to provide Microsoft 365 Copilot to 12,500 educators and support staff. In an initial trial, educators reported saving an average of 9.3 hours per week by streamlining administrative tasks, information searches, and lesson planning.

BCE leveraged Microsoft Copilot Studio to create a generative AI tool that helps educators integrate Catholic traditions and values into the classroom. Drawing from BCE’s Catholic identity site, theological database, and religious education curricula, the tool ensures all staff, regardless of their Catholic background, can easily access guidance for applying a Catholic lens to lesson planning and life skills discussions with students.

Coles Group leverages AI to reimagine the grocery experience

Coles Group is revolutionizing the grocery business by leveraging advanced AI and cloud technologies to redefine operations and elevate customer experiences. Confronted with rising competition and shifting customer expectations, Coles turned to AI.

Among its standout AI initiatives is Tell Coles, a generative AI model that deciphers customer feedback to offer actionable insights for store managers, ensuring swift and meaningful improvements. Meanwhile, digital chef delivers hyper-personalized recipes and cooking tips in real time, powered by Microsoft Azure machine learning models.

Internally, Microsoft AI copilots provide team members with intuitive, real-time tools that streamline workflows and enhance productivity, enabling precision in inventory and operations across 850 stores, and resulting in heightened customer engagement, improved sustainability practices, and a blueprint for digital excellence in retail.

Petbarn’s AI assistant brings personalized pet care to customers

Petbarn has introduced PetAI, a generative AI solution designed to help pet owners keep their pets happy and healthy. Built with Azure OpenAI Service, Azure AI Search, and Azure App Service, PetAI acts as an intelligent assistant, offering personalized pet care advice and tailored product recommendations.

Launched on Petbarn’s website in October 2024, PetAI quickly gained traction, with thousands of customers embracing its functionality. Now integrated into the new Petbarn App, it provides a comprehensive, AI-powered approach for managing pet wellbeing, setting a new standard in personalized pet care.

Suncorp accelerates AI revolution in the insurance industry

Suncorp Group is transforming the insurance industry with AI integration across its operations. Leveraging the latest Microsoft AI capabilities at scale, Suncorp has more than 120 AI use cases in development to enhance both customer experience and employee satisfaction.

Among these innovations is Smart Knowledge, which analyzes thousands of articles to deliver relevant information to Suncorp’s contact center team, enabling faster and more accurate customer support. Additionally, Suncorp has implemented an Azure OpenAI Service-based solution that provides claims managers with a unified view of each insurance claim, reducing time spent tracking information across systems and shortening claim lifecycles by 9%.

To further improve employee experiences, Suncorp has rolled out Microsoft 365 Copilot alongside its AI+U Academy, a training initiative designed to empower staff to effectively use AI tools in their daily work. These efforts not only enhance employee satisfaction but also ensure exceptional outcomes for customers, solidifying Suncorp’s position as an industry leader in AI-powered innovation.

The Australian Federal Police (AFP) leverages AI to better protect Australians

Australia’s national policing agency, the Australian Federal Police (AFP), is expanding its partnership with Microsoft to develop custom AI solutions built on Azure AI services. With 7,000 staff members tasked with investigating federal crimes across Australia and the Australian Capital Territory, the AFP is leveraging AI to detect deepfake images and other problematic content. This work has shown particular promise in child protection, where AI has already enabled law enforcement to track child predators and rescue victims more effectively.

Along with 50 other Australian Public Service agencies, the AFP is trialing Microsoft 365 Copilot, which has demonstrated early gains in officers’ efficiency by automating document and report creation. Further, the agency is exploring how AI can safeguard officers’ mental health, using generative AI to create text summaries of sensitive material and modify graphic images to reduce their psychological impact.

To address ethical and community concerns, the AFP has established a Responsible and Ethical AI Framework, drawing on Microsoft’s principles to ensure AI is implemented with diligence, accountability, and strong human oversight. These initiatives position the AFP as a leader in responsible AI use within law enforcement.

Find the resources to support your AI journey

Australia is only beginning to unlock the immense potential of AI, yet the AI Tour in Sydney showcased how visionary Australian organizations are already revolutionizing industries, from education and policing to banking and insurance. Let’s embrace this opportunity, together.

• Explore Microsoft’s AI solutions 
• Catch up on core concepts with AI Office Hours 
• Read An Introduction to Generative AI and Safety
• Assess your AI readiness

¹IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024.

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These organizations are under extreme pressure. Populations in many parts of the world are aging, leading to increased demand for healthcare. People across the globe face a wide range of health challenges, from Alzheimer’s to Zika. At the same time, the number of workers available to fill care-related roles is not keeping pace.  

Meanwhile, nonprofits and social impact organizations that tackle big health challenges and provide direct care work in a tricky fundraising landscape. They navigate the gap between very real needs, workforce shortages, and funding constraints by seeking opportunities to do more of their essential work with less. 

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Some health-focused organizations, including the British Heart Foundation in the United Kingdom and BaptistCare in Australia, are doing just that with Microsoft 365 Copilot. This AI-powered digital assistant, integrated into the Microsoft 365 technology stack, helps employees create, edit, summarize, and analyze information in Microsoft 365 apps, documents, and conversation. In summary, it empowers employees so they can spend more time on the mission. 

Health-focused nonprofits must also uphold their commitments to security and privacy. Copilot operates within each organization’s instance, staying separate from public-facing models. Built-in security features of the technology, plus ongoing internal training and ethical guidelines, keep patient and organizational data safe. 

“We care for people, and that includes caring for their information,” says Daniel Pettman, Chief Digital Information Officer at BaptistCare. “Copilot securely takes out manual, irritating, or unnecessary steps [of work] so we can help clients achieve the outcomes they want to achieve.” 

Saving time to focus on mission-critical work

BaptistCare supports more than 24,000 people through its aged care homes, retirement living villages, specialty senior community housing, in-home care services, and other programs that help vulnerable groups. Frontline workers care for older residents with dementia, while behind-the-scenes staff keep the organization running. Every minute saved can be reinvested in the actions that support aging Australians and others living in difficult circumstances.  

BaptistCare adopted Microsoft 365 Copilot on the first day it was available. “The small margins that generative AI saves add up to a lot,” Pettman says. “By using really good technology, our employees can focus more on transforming the lives of people we work with.” 

BaptistCare staff delegate repetitive or manual tasks to Copilot, and they get a head start on time-intensive projects through the AI assistant. It summarizes meetings, inboxes, and documents, such as lengthy governmental reports on aged care. Members of the technology team prompt Copilot to build custom apps through Microsoft Power Apps, which they then fine-tune, cutting development time in half. Additionally, staff direct Copilot to draft documents and communications such as emails, which is particularly helpful for people who speak English as a second language.  

Copilot helps BaptistCare staff streamline everyday tasks and cuts through information overload, saving users two to eight hours a week. This enables more creative problem-solving, a critical benefit for addressing today’s evolving health needs.

Freeing up headspace for innovation

Technology is helping to accelerate medical breakthroughs, including at the British Heart Foundation (BHF). As one of Europe’s largest investors in heart and circulatory disease research, BHF finances work that provides insights and discovers treatments. Many of the organization’s grant recipients use AI to fuel their research projects. And now BHF is using Microsoft 365 Copilot to help create greater efficiencies internally, too.  

Smoother operations can lead to more room for big-picture thinking—just what health organizations need to innovate solutions to life-threatening conditions. “We’re noticing that Copilot reduces cognitive load and enables [users] to focus on the difficult challenges they’re here to solve,” says Thomas Sorensen, Technology Innovation Manager at the British Heart Foundation. 

Central to many health-focused research organizations, BHF is constantly experimenting. The 300 BHF staff are using Microsoft 365 Copilot to stay up to date on communication and meeting action items, which particularly helps those who have meeting-heavy schedules. The coaching function within Copilot helps users improve their communication and writing skills. Staff also search for a needed document or piece of information by querying the AI assistant, which can hunt across platforms—and save up to 15 minutes per search. 

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Fifteen minutes may not seem like a lot of time. It adds up, though, especially when we consider the results of alleviating that pressure. “With Copilot, we’re helping our colleagues gain time back to come up with ideas that move the organization forward,” explains Peter Ugbashi, Technology Graduate at the British Heart Foundation. BHF staff participating in the pilot are using their time to collaborate and focus even more on advancing the organization’s vision of a world free from the fear of circulatory and heart diseases. 

“We’re continuing this exploration to maximize our investment in Copilot and harness its productivity power,” explains Sorenson. “Microsoft 365 Copilot is helping us be more efficient so we can work harder and faster on our mission.”

Addressing healthcare workforce challenges

Nurses, physician assistants, and countless other health workers provide the vital and often life-saving care that we all need at some point. Without these dedicated workers, healthcare systems simply do not work. Yet the World Health Organization projects a shortfall of 10 million health workers worldwide by 2030.¹ 

BaptistCare is leveraging Copilot to address staffing difficulties. Pettman sees the AI assistant as a retention tool, encouraging team members to stay. The people who use Copilot appreciate its support in getting their important work done more efficiently, promoting better work-life balance.

In my 20-year IT career, I’ve never seen people as excited about technology as they are with generative AI and Copilot.”

Daniel Pettman, Chief Digital Information Officer at BaptistCare

In addition, cutting-edge technology like Copilot acts as a magnet for skilled workers looking for their next position. During interviews, hiring managers discuss the organization’s commitment to using the most modern technology like AI to empower employees, which sets BaptistCare apart and attracts qualified candidates.  

Lastly, Copilot assists the Australian nonprofit in the operations of hiring. Managers prompt the technology to draft a business case for added headcount and a job description for the open role, then refine the content. These time-saving steps help BaptistCare create and fill important positions more quickly. 

The idea of efficiency can feel abstract, but for health-focused organizations, gains translate to better quality of life and healthier outcomes. Pettman says, “Our vision is every individual living well, and we work to make sure our clients are getting more benefit from us. Technology empowers our staff to do that.”

Explore AI solutions for nonprofits

Learn more about how Microsoft is supporting nonprofits, see how other organizations are using AI to drive impact, and get more information about how you can safely and securely deploy AI to support your business needs.  

¹Health workforce, World Health Organization.

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AI’s transformative power is now evident globally. Deemed a technology of the future not long ago, AI-powered business transformation is unfolding across all sectors. It’s clear that mastering AI is crucial for maintaining a competitive edge, and Japan has risen to this challenge. Bolstered by robust infrastructure, advanced technological capabilities, and significant government support for AI initiatives, Japan ranks second on the Asia-Pacific AI Readiness Index.¹

To support this progress, Microsoft plans to invest $2.9 billion over the next two years to expand hyperscale cloud computing and AI infrastructure in Japan. This marks the largest investment Microsoft has made in Japan since it opened its first international office there 46 years ago.

The investment also emphasizes AI digital skilling, which Microsoft aims to provide to more than 3 million people in Japan within three years, targeting full-time and part-time workers, developers, students, and especially women. In partnership with Japan’s government, we will open the first Microsoft Research Asia Lab in Tokyo. Here, we’ll focus on embodied AI, societal AI wellbeing, and scientific discovery aimed at strengthening cybersecurity defenses in response to Japan’s updated National Security Strategy.

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Microsoft’s expanded initiatives and partnerships with educational, governmental, and private organizations in Japan are poised to enhance AI capabilities across various sectors and amplify the societal benefits and economic growth that are already part of Japan’s culture of innovation. I’m excited to showcase some of the very organizations that are contributing to AI leadership, not only in Japan or Asia, but globally.

Dentsu unlocks employee creativity with Microsoft Copilot support

Dentsu, a global leader in creative media with a 120-year history and 72,000 employees, has effectively integrated Microsoft Copilot into its operations to tackle the increasing demand for high-quality content across multiple channels. As part of this integration, Copilot has been deployed to automate routine tasks such as email management and meeting recaps, and to enhance creative processes through faster ideation and content visualization. This strategic deployment also includes Microsoft Teams Premium, which offers features like intelligent recap and real-time translations, optimizing communication across dentsu’s global teams.

The adoption of these AI tools has significantly benefited dentsu employees by reducing the time spent on administrative tasks, thereby allowing more time for creative and strategic work. For instance, the automation provided by Copilot has saved employees approximately up to 60 minutes per day, translating into substantial productivity gains across the company. These efficiency improvements have also led to superior creative outputs, enabling dentsu to maintain its competitive edge in the fast-paced media industry.

“We started using Copilot with the hypothesis that it would elevate our people’s potential and bring additional value to our clients. I am delighted our high expectations proved to be accurate based on survey data and insights as we work to broaden access to this and other generative AI technologies,” said Brian Klochkoff, Executive Vice President, Innovation & Emerging Technologies at dentsu.

Moreover, the integration of AI has facilitated a cultural shift within dentsu, fostering an environment where technology enhances creativity rather than replacing it. The company continues to explore new AI capabilities through initiatives like Microsoft Copilot Studio, aiming to expand the use of AI across various functions to further streamline operations and enhance creative capabilities.

Recruit Co., Ltd. uses conversational AI to address nuanced customer requests

Recruit Co., Ltd., a prominent human resources technology company, has implemented a conversational AI user interface for Jalan.net, one of Japan’s leading travel booking platforms, powered by Microsoft Azure OpenAI Service. Initiated in May 2023, this innovative application aims to quickly gather user feedback and adapt to customer needs not typically met by conventional search functions.

As a result, user interactions on Jalan.net have been significantly enhanced through more dynamic exchanges that accommodate nuanced and implicit customer preferences related to travel themes, purposes, and modes, which were previously difficult to discern. Attracting tens of thousands of users monthly, the implementation has been widely accepted, with negative reactions constituting less than 1% of user responses.

The successful implementation of Jalan.net has prompted wider integration of Azure OpenAI Service within Recruit itself, creating more than 30 internal environments for projects like interactive resume building and internal information sourcing tools. Moving forward, the company plans to automate approval processes for AI usage and integrate internal data into AI models to enhance personalized experiences, maintaining a focus on security and compliance.

TXP Medical enhances emergency response with AI-powered mobile service

TXP Medical has released an AI-based smartphone application for paramedics, NSER mobile. With nearly 22,000 users per month, NSER mobile streamlines traditional, labor-intensive operations such as manual data entry, paperwork, and direct telephone communications, which are error-prone and time-consuming. The service incorporates AI-powered voice command input, allowing emergency personnel to input patient data hands-free using voice recognition algorithms that accurately interpret medical terminology, even in noisy environments, while AI-powered image analysis processes images of medical documents. Employing Optical Character Recognition (OCR) and advanced image processing allows NSER mobile to quickly extract essential data, speeding up the conversion of visual information into digital formats and reducing the need for phone confirmations with hospitals.

The impact of the NSER mobile service is notable, particularly in Kamakura, Japan, where it reduced average telephone communication time with hospitals from 3 minutes and 30 seconds to 2 minutes and 44 seconds, doubling the target time achievement ratio.

Overall, TXP Medical’s NSER mobile service not only boosts the operational efficiency of emergency medical teams but also improves patient care quality. It showcases AI’s potential to transform emergency medical services by optimizing critical processes and easing the workload on healthcare providers.

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DENSO enhances robot’s understanding with generative AI

DENSO Corporation, a leading automotive parts manufacturer in Japan, is leveraging Microsoft Azure OpenAI Service to develop advanced autonomous robots capable of human-like interaction. Designed to understand and execute tasks based on verbal instructions, DENSO faced numerous challenges, including the robots’ ability to adapt to unforeseen circumstances as well as managing the complexity of programming, ensuring operational accuracy, and integrating advanced AI technologies into practical robotic applications. These challenges were compounded by the need to create user-friendly interactions that allowed non-technical users to easily operate and instruct the robots based on simple verbal commands.

Advanced generative AI powered by Azure OpenAI Service addressed these challenges by enhancing the robots’ ability to understand and process complex verbal instructions for greater adaptability and functionality. The service improved operational accuracy through features that allowed for precise action selection based on input text, simplifying the programming process and making the technology accessible to non-technical users. Additionally, Azure’s cloud-based infrastructure facilitated scalability and flexibility in deployment, and streamlined the development processes, reducing complexity and boosting efficiency across various applications.

In addition, GitHub Copilot significantly enhanced DENSO’s development process by quickly generating and testing new robotic functions, thus reducing costs and accelerating capability expansion. This tool streamlined code generation and debugging, improving productivity and easing the learning curve for new developers.

Takeshi Narisako, Executive Officer of Cloud Service Development Department at DENSO, views the project as “a good start to research and development to create social value through the use of generative AI.” Looking forward, the company will invest in ongoing collaboration with various organizations, including Microsoft, to harness technological and operational strengths, furthering the development of AI-powered robotics and enriching society through human-robot interactions.

Mitsubishi Corporation leverages Azure OpenAI Service for customer GPT

Mitsubishi Corporation, one of Japan’s leading trade, investment, and management companies, is using generative AI to streamline text operations and support better investment and management decisions. Having explored AI from various vendors since 2015, including OpenAI’s ChatGPT, the company’s IT Services Department opted for Azure OpenAI Service to further the development of its custom generative AI application, MC-GPT, emphasizing security and comprehensive features.

“First of all, Azure itself is largest global service with the ability to handle a variety of languages including Japanese and English and operates securely at a high speed,” explained Hidenori Kurashima, team leader of the Process Transformation Promotion Team of Mitsubishi Corporation’s IT Services Department. “In fact, in the area of generative AI, Microsoft is ahead of the competition. On the other hand, peripheral tools such as Azure Cosmos DB and Azure Synapse Analytics are also available, making it easy to integrate with Microsoft Word and Microsoft Excel that we use in our daily work.”

Within two months of adoption, the company had created and evaluated two prototype applications internally. In collaboration with partner Knowledge Communication Co., Ltd., Mitsubishi established a robust environment for deploying Azure OpenAI Service extensively, integrating it with additional Azure services like Azure Cosmos DB and Azure Synapse Analytics for superior data handling and user interface development.

The prototypes generated interest from 12 different departments, prompting the company to create a customized AI engine using its internal data to address both overlapping needs and department-specific requirements. Looking forward, Mitsubishi plans to harness Microsoft’s extensive AI offerings, including Copilot for Microsoft 365, to further streamline business processes, boost operational efficiency, and enhance decision-making in investments and management.

AI for everyone in Japan

These stories illustrate the substantial progress Japanese companies are making in integrating AI across sectors and highlight Japan’s collective commitment to reinforcing its position as a global leader in innovation.

Microsoft’s extensive investment and strategic initiatives underscore the robust foundation being laid for cutting-edge technological advancements and AI integration, focusing on enhancements in digital skilling, cybersecurity, and AI-powered automation that supports economic growth and fosters an environment where technology enhances human creativity and operational efficiency.

We hope these narratives have not only informed but also inspired you to explore how AI can revolutionize your own fields of interest or business. As we conclude our series, we encourage you to take the next steps in your AI journey, leveraging the insights and innovations shared to ignite transformative projects in your own organization.

Take the next step in your AI journey by exploring Microsoft’s AI solutions, diving into our insightful white paper on the five pillars of AI success, and getting skilled up with Microsoft Learn’s AI learning hub to ensure you’re ready to leverage Microsoft AI to its fullest potential.

Footnote

¹New Salesforce Report Reveals How Asia Pacific AI Readiness Will Impact Deployment of Generative AI, Salesforce.

The post Showcasing AI-powered business transformation in Japan appeared first on The Microsoft Cloud Blog.

Explore how to unleash retail team potential with intelligent solutions from Microsoft.

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MICROSOFT TEAMSLearn more 

In the race to deliver engaging in-store experiences, Microsoft Teams is uniquely positioned to equip retailers, such as La Vie en Rose and Domino’s, with a single platform to transform their store team’s operations and deliver first-in-class customer experiences. And with the potential to streamline tasks and save valuable time, AI is quickly becoming a critical layer on top of existing communication solutions to help retailers deliver. Even employees are ready and waiting for AI to be introduced, with 65% of frontline workers optimistic about how AI will help them in their job. With Microsoft Teams, you can level up your retail workforce with smarter and simpler experiences for communications and operations in your stores.

Take your retail teams’ productivity to the next level with generative AI 

It’s no secret that store associates can work more effectively when they have the right tools. By harnessing the power of smart solutions in the communication tools they use every day, retailers can not only make their operations more productive but also keep their store communications agile.

We’ve enhanced essential communication tools in Microsoft Teams—like chat, channels, phone calls, and meetings—with Microsoft 365 Copilot. Copilot combines the power of large language models (LLMs) with your data in the Microsoft Graph—your calendar, emails, chats, documents, meetings, and more—and Microsoft 365 apps to turn your words into the most powerful productivity tool on the planet. This fosters a smart workplace that elevates productivity and streamlines information access for retail teams.

In November, we announced Microsoft Copilot Studio, a versatile low-code tool designed to customize Microsoft Copilot for Microsoft 365. Copilot Studio enables you to extend your own retail data to Copilot, or to build standalone copilots that bring together a set of powerful conversational capabilities from custom GPTs, to generative AI plugins, to manual topics. 

Copilot Studio provides a quick and easy way to create and publish a plugin directly to Copilot for Microsoft 365 via a drag-and-drop low-code approach that includes the logic and data connectivity to answer questions based on your retail data and processes.

Learn more about Copilot in Microsoft Teams.

Target communications and engagement on the frontline 

Reaching the frontline with key information and news can be difficult, both in targeting the right groups and then engaging them with the content once delivered. It especially gets difficult if different communications are being sent to different apps, adding cognitive load onto the frontline to find the right information across multiple communication sources. 

Continuing to deliver on a single destination for frontline communications, we’re excited to announce Copilot in Viva Engage in Teams, available in public preview in January 2024. This Copilot experience uses AI-created conversation starters, prompts, and images to help inspire retail leadership and corporate communications teams to post in frontline communities and increase engagement with store teams right from the same place where they work. And this AI-enhanced communication tool helps frontline retail teams increase the quality of questions being asked with suggested prompts.

Copilot in Viva Engage in Teams speeds up your ability to create impactful and dynamic communications for your organization. Combining this with the power of Teams simplifies your ability to target communications to specific teams, whether at the company, store, or role level. We are excited to share that retail corporate communications teams will soon be able to easily send important announcements like safety policy changes and store sales targeted to frontline employees based on location, department, and job roles from the Teams home experience. These operational announcements will be pinned at the top of frontline workers’ home experience so they will never miss key messages that keep your business running smoothly. This feature in Teams will be generally available in March 2024.

Simplify in-store operations with modern task management

Microsoft Teams helps automate and streamline processes across your organization, keeping all information in one place to simplify frontline workers’ daily work. We’re building on the existing task publishing and automation capabilities in Microsoft Planner, formerly known as the Tasks app in Microsoft Teams.  

Your retail organization will be able to schedule recurring lists within task publishing. With this new capability, you can now choose the cadence of recurring task lists—for example, let’s say every Monday you send a store audit task, then task publishing will automatically take care of scheduling the publication.

Retail organizations will be able to enforce additional rules for a task to be marked as completed, such as uploading photos, completing a form, as well as requiring manager approval before marking a task complete. With this feature, tasks can only be marked as complete once specific conditions are met, ensuring high-quality work across the frontline. 

Task publishing will also allow your organization to create a task that every member of the recipient team must complete. Retailers can use this to publish a training task—for example, health and safety trainings—to designated stores and locations.

These task management features will be generally available in March 2024. Sign up to be notified when these enhancements to Planner are available.  

Streamline on-the ground voice communication    

Teams Phone is a cloud calling service that keeps your entire workforce connected with flexible, reliable, and smart calling—all in Teams. We are excited to announce a new Teams Phone for Frontline Workers offer that will be generally available in February 2024. With Teams Phone, frontline workers can securely communicate and collaborate with customers, teammates, and suppliers through an intuitive and easily customizable solution. This offer can be purchased as an add-on to Microsoft 365 F1 and F3 SKUs for $4 per user per month.¹

Unlock instant push-to-talk for store teams  

Heads-up and hands-free communication is key for real-time collaboration and quick problem-solving in retail settings. To continue to enable seamless store communication, we are excited to announce that Walkie Talkie in Teams will now work with any generic wired headsets on Android. This feature will be generally available starting in February 2024.

To enhance and simplify store communication, frontline workers who use Walkie Talkie in Teams can now choose to automatically listen to incoming messages from any of the channels they have pinned as favorites. With this new feature, users can easily stay connected to multiple channels without needing to switch channels manually. This feature is now generally available.

Meet us at NRF 2024 

Microsoft is committed to empowering retail organizations around the world to modernize the in-store experience. We continue to invest in Microsoft 365 and Microsoft Teams innovations for the frontline, with solutions like Microsoft Copilot and Microsoft Teams Phone.  

This week at the National Retail Federation (NRF) 2024, we are announcing new solutions designed to enable store teams to efficiently meet customers’ expectations and improve the retail experience in this new era of AI. We’ll be in New York City for retail’s biggest show January 14 to 16, 2024, on level 3 at booth #4503, conveniently located at the main entrance of the Javits Exhibition Hall. We can’t wait to see you there.  

• Read the Forrester study, The Total Economic Impact™ Of Microsoft 365 For Frontline Workers In Retail.  
• For a deeper dive into our product announcements, read the MTC blog. 
• Transform and unify your frontline workforce with Microsoft Teams. 
• Visit our NRF landing page for more details and guided tours of our solutions. 
• Take our Guided Tour to see how to leverage Planner in Microsoft Teams for your stores. 
• Learn how to power your AI transformation with the Microsoft Cloud for Retail blog. 

¹ Microsoft Teams Phone Standard for Frontline Workers ($4 user/month) will be available as an add-on to Microsoft 365 F1 ($2.25 user/month) and F3 ($8 user/month).

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Retail is one of the most dynamic and competitive industries in the world, where customer expectations and preferences are constantly evolving. A recent McKinsey report confirms the retail sector has experienced as much disruption in the past five years as it has in the previous 25.¹ Perhaps never before in the history of the industry have we seen every single one of retail’s primary stakeholder groups—customers, suppliers, employees, and investors—simultaneously change their behavior and expectations. According to McKinsey, a retailer’s actions in the next two to three years could position it for success in the next 20.¹ In this environment, retailers are turning to the power of generative AI to provide differentiated value across the shopper journey. Take Walmart, for example. Two days ago, Walmart announced how they’re using Microsoft’s generative AI technology to build engaging new shopping experiences and provide enhanced productivity to store associates. When the world’s largest retailer decides to make big bets on generative AI, it’s clear the stakes are high and the opportunity to provide value is here.²  

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Around the world I’m hearing from retailers who are excited about the potential of AI. The most common question I was asked by retail executives in 2023 was where to start to find the most value. Retailers are looking for ways to begin working with generative AI that will allow them to learn quickly and scale effectively. I’m excited to share new tools that help retailers more easily incorporate AI across the shopper journey. Microsoft has lowered the barriers to building generative AI solutions that improve shopping experiences, support store associates, and enhance retail media campaigns. Through new Microsoft Copilot capabilities in Microsoft products, copilot templates for building applications, and retail data solutions in Microsoft Fabric, Microsoft makes AI implementation more accessible to retailers of all sizes. Retailers can now more easily take the first steps with generative AI.

Let’s look at these new offerings in more detail:

Shopper value

Delight shoppers with more personalized experiences. Retailers can use a copilot template on Azure OpenAI Service to build more individualized shopping experiences across their existing web sites and applications (in public preview).

With applications built using the copilot template, shoppers can engage in helpful and natural conversations that guide them to precisely the goods they need, while saving them time. Generative AI produces experiences that leave shoppers with the confidence they have found the best items. Microsoft Cloud for Retail copilot template pairs the breadth of expressiveness found in a Large Language Model (LLM) with deep knowledge about a retailer’s catalog and expertise. This new approach to commerce comes from advances in generative AI, all built with Responsible AI principles in mind.

Enhance shopping through personalizing marketing with new Copilot capabilities in Microsoft Dynamics 365 Customer Insights (coming soon to public preview).

Our AI-first experience enables marketers to describe the desired marketing outcome in natural language and let generative AI suggest, build, launch, and monitor campaigns in real-time. Transform marketing workflows and improve campaign ROI by uniting business data with Copilot features that deliver outcomes faster and more efficiently. These Copilot capabilities will be available in preview in the first quarter of 2024, with general availability by the third quarter of 2024. Existing Dynamics 365 Customer Insights customers can sign up now for the early access public preview program.

Store associate value

Empower store associates to improve productivity, job satisfaction and customer experiences. Using a copilot template on Azure OpenAI Service, retailers can infuse AI into store operations, better supporting associates (in public preview).

Our copilot template for store operations helps build a generative AI-powered LLM based assistant that enables Q&A from store documentation such as store operating procedures and natural language-based task creation (form filling). Store associates can use natural language to quickly and easily access the information they need in the flow of work, increasing their productivity and efficiency. With this copilot template, retailers can more easily build experiences that enable store employees to quickly get answers to their questions on store operating procedures, HR policies, and benefits. In addition, store associates and managers can save time through natural-language prompt-enabled task creation and assignment.

Using the copilot template, in combination with Microsoft Power Platform and Microsoft Dataverse capabilities, retailers are empowered to seamlessly connect data across multiple lines of business systems to generate AI driven recommendations and actionable solutions that will help store associates make the right decisions.

Consumer brand value

Provide consumer goods brands with tools to auto-generate and edit campaigns with Retail Media Creative Studio (in preview).

Microsoft is introducing generative AI to the Microsoft Retail Media platform (powered by PromoteIQ) through the launch of Retail Media Creative Studio, a comprehensive, end-to-end banner ad creative solution tailored for retail media, available in preview starting in January 2024. With Retail Media Creative Studio, retailers can unlock new revenue with optimized retail media campaigns across multiple retail media channels, such as the retailer’s owned digital properties and across the open web. The solution optimizes banner campaign performance using AI-powered algorithms and delivers a more personalized shopping experience.

The data solutions providing AI to retail innovation

Make the most of retail data to uncover insights that lead to better shopper journeys with retail data solutions in Microsoft Fabric (in public preview).

One of the greatest, if not the greatest, challenges retailers face today is the need to unify data from disparate systems in order to gain insights from it. We are very excited to offer this industry specific set of capabilities in Microsoft Fabric that enables retailers to accelerate time to insight generation by unifying, enriching, and modeling industry data in Fabric. With seamless data harmonization, cross-application analytics, and AI applications, retailers can unlock the full potential of their data and drive their business forward. By using Fabric, retailers can consolidate relevant retail data from multiple systems into a unified, governed hub providing a secure single source of truth for all data and analytics needs. And, with retail data solutions in Fabric, retailers can use the same copy of data without needing to move it from its original source.

Our connector with Sitecore OrderCloud means that data for three important areas: product, customer, and orders, has been mapped to our industry data model, reducing engineering effort and accelerating time to insights.

Across the Microsoft Cloud, retailers now have multiple options when applying AI to key business outcomes across the shopping journey. From building their own solutions to leveraging the copilot templates, Microsoft Cloud for Retail integrates with retailers’ existing systems, seamlessly connecting a retailer’s customers, employees, and data. In each industry, Microsoft builds unique assets to verticalize the Microsoft Cloud and enable a broad partner ecosystem. Built on a foundation of trust and Microsoft’s Responsible AI principles, retailers can safely and securely unlock productivity across their entire business with Microsoft Cloud for Retail.

See it all at NRF 2024 and beyond

According to AI adoption in Retail, the most recent research Microsoft commissioned with The Futurum Group, 87% of retail companies globally have implemented AI in their store operations. Clearly the adoption of AI is increasing as this new technology brings substantive rewards to organizations. Microsoft is here to connect with you, listen to your needs, and support developing your AI strategy. Learn more at the links below and reach out to a Microsoft representative at any time for conversation.

Join us to hear the latest on how Microsoft is helping customers by attending our sessions at NRF 2024 or listening on-demand after the event: 

• Retail Unlocked: Achieve more with Microsoft: Hosted by Shelley Bransten, Corporate Vice President, Global Retail, Consumer Goods and Gaming industries, Microsoft. Sunday, January 14, 2024, from 1:00 PM to 1:30 PM Eastern Time. Join this interactive session to hear about one retailer’s AI journey to date. Hosted by Microsoft’s Corporate Vice President, Retail, Consumer Goods & Gaming industries, Shelley Bransten, you’ll also learn about new AI-focused findings from Futurum Research and all new AI capabilities in Microsoft Cloud for Retail that will help power your AI transformation.
• Unlocking true customer-centricity: Optimizing touchpoints across the shopper journey with AI: Hosted by Kathleen Mitford, Corporate Vice President, Global Industry Marketing. Monday, January 15, 2024, from 11:45 AM to 12:15 PM Eastern Time. Generative AI and large language models have captured the attention of executives across industries. While the technology’s use cases seem endless, smart retailers and brands must identify and prioritize the applications of generative AI that will be most valuable to their organization and partner with organizations who will treat their data with the highest privacy standards. Join us to hear how Microsoft is helping organizations large and small maximize their generative AI opportunities safely and responsibly..  
• Unify your data to unlock AI opportunities: Hosted by Martin Kostal, General Manager, Microsoft Industry Clouds. Tuesday, January 16, 2024, from 1:00 PM to 1:45 PM Eastern Time. Retailers are swimming in data all day. Even with sophisticated legacy technologies and cutting-edge data science, the majority of that data goes uncollected. Insights stay hidden—often in plain sight. But that’s starting to change. AI tools are enabling retailers to understand their customers, merchandising, supply chains, operations, and workforces better than ever before. Join us to hear about the myriad insights that retailers are drawing from newfound and increasingly precise data sources to run leaner, smarter stores.   

Additional Microsoft announcements at NRF 2024

• Read the Microsoft 365 blog to learn how to drive AI-enabled efficiency with Microsoft Teams for your retail frontline. 
• Read the blog from Martin Kostal, General Manager, Engineering, Microsoft Cloud for Retail.
• Read the Official Microsoft Blog, “Walmart unveils new generative AI-powered capabilities for shoppers and associates.”
• Read the official Microsoft press release “Microsoft unveils new generative AI and data solutions across the shopper journey, offering copilot experiences through Microsoft Cloud for Retail.” 

Learn more about implementing AI in store operations

• Download the full Futurum Group research report.
• Stay informed about Microsoft Cloud for Retail.
• Follow Microsoft Cloud on LinkedIn. 

¹Retail reset: A new playbook for retail leaders, McKinsey & Company.

²IDC Infographic, sponsored by Microsoft, The Business Opportunity of AI, #US51315823, November 2023.

The post Microsoft introduces new capabilities that help retailers bring AI to the shopper journey and enhance store associate experiences appeared first on The Microsoft Cloud Blog.

The importance of data in AI-driven retail fuels the algorithms, insights, and personalized experiences that are increasingly integral to success of the modern retailer. The ability to collect, harmonize, and derive meaningful insights from vast amounts of data empowers retailers to make informed decisions, create personalized experiences, and stay competitive. Understanding that data is key to success, we’ve also released retail data solutions in Microsoft Fabric—helping retailers to standardize and enrich raw data with connectors to engage customers more effectively. Read on to learn how you and your employees can maximize benefits from your data.

Microsoft Cloud for Retail

Become a resilient retailer and drive sustained profitability and growth

Discover solutions 

Optimize shopper experiences with personalization  

Generative AI models have vastly improved the experience of chatting with virtual assistants—providing expert advice and bringing ease and convenience to online shoppers. The copilot template for personalized shopping on Azure OpenAI Service (preview) enables retailers to build tailored shopping experiences that allow consumers to shop using natural language. Online shopping is now akin to consulting with a specialist in a store. Personalized shopping taps into the retailer’s vast expertise and knowledge base to apply across shopping situations with the convenience of anytime, anywhere availability. Using a retailer’s current systems and data, this prebuilt template can be embedded into existing experiences, such as a website or app, making it easier for shoppers to find and purchase the products they want. With the prebuilt copilot template, retailers can offer customers personalized expert advice as well as guide the shopper to find unexpected items and learn more about the retailer.  

The copilot template is designed to be easy for any retailer to use. Its open architecture lets each organization leverage existing investments in commerce, inventory, and personalization solutions to support a wide range of buying environments, including e-commerce sites and mobile apps. Designed to have interactive discussions with shoppers, the copilot template can be adapted to each seller’s brand and values, responds to their questions and facilitates decision-making to create a personalized experience that feels natural and easygoing. 

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Increase productivity and efficiency with copilot for store operations   

Whether associates are long-term employees or seasonal workers, empowering the workforce and optimizing their performance is critical to customer satisfaction and retailer success. With the new generative AI-powered copilot template for store operations on Azure OpenAI Service (preview), retailers can build technology that allows frontline workers to quickly and easily access the information needed for their work day, increasing productivity and efficiency with text and voice commands.  

Retail frontline workers can easily get answers to questions on store operating procedures like how to handle refunds or set up product displays. Using natural language, associates can ask questions about the product catalog to support shoppers, review HR policies and benefits, or complete surveys. Copilot template for store operations enables workers to independently manage issues such as addressing damaged items. For example, with a few prompts, an associate can ask copilot template for store operations for the company’s standard operating procedure for replacing damaged products. In addition to getting the right steps to handle the process, the associate can also create a task to replace products and send an alert through Microsoft Teams to the store manager. Copilot template for store operations eliminates the need for pen and paper, data in multiple systems, or the retail frontline tracking down the store manager for every problem that arises.  

Likewise, the copilot template for store operations helps store managers optimize the work experience for their associates and deliver improved customer experiences. They can ask Microsoft Teams for a summary of key performance indicators (KPIs)—such as sales, inventory, and customer feedback. Using copilot template for store operations, a manager can quickly create tasks and assign associates to address. Copilot template for store operations provides retailers insights and information in the normal flow of work, helping managers and associates increase productivity and responsiveness.

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Gain actionable insights fast with retail data solutions in Microsoft Fabric

Microsoft Fabric is a complete analytics platform built for the era of AI. It enables the transformation of data into predictive insights, to ensure better business outcomes and reduce costly data replication and movement to support data analysts and data scientists. With these solutions in place, organizations can also automate duplicative tasks resulting in data efficiency and resource management.   The self-serve ability enables organizations to equip everyone in the company with their own access to these powerful analytics. Underscoring all of this is a commitment to help keep data secure and protected in a single source while meeting stringent compliance requirements.  

Retail data solutions in Microsoft Fabric is an industry specific workload that enables customers to accelerate time to insight generation by unifying, enriching, and modelling industry data on Microsoft Fabric​. Organizations can plan, architect, and design data solutions for data governance, reporting, business intelligence, and advanced analytics. Using data definition, formats, and storage enhancement, a standardized data model is created to help organizations derive actionable insights from large volumes of retailer data. Retail data solutions in Microsoft Fabric provide seamless integration across different systems and applications. By establishing a foundation for naming, data classification, and access controls, retailers can be assured effective governance of their data. 

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Sitecore OrderCloud connector enhances your digital capabilities 

Sitecore OrderCloud connector, one of the key capabilities of retail data solutions, gives you a quick and reliable platform to get commerce data onto Microsoft retail industry standard schema. The connector performs transformation and orchestration on top of the data from Sitecore OrderCloud to align with the data model. The connector works across three key data sets:   

1. Products: All the sellable products available in Sitecore OrderCloud. 
2. Customers: End customers who are shopping from your e-commerce portals. 
3. Orders: Customer generated online sales orders.  

The key role of the connector is to get data into the retail data solutions schema, giving users the benefit of access to solutions that are built on top of retail data solutions. Microsoft Power BI reports on sales, products, and customer data solutions can be enabled on top of Sitecore OrderCloud data out of box. 

Using the connector in combination with Microsoft Power Platform and Dataverse capabilities empowers customers to seamlessly connect data across multiple line-of-business systems to generate AI-driven recommendations and actionable solutions that will help store associates make the right decisions. The connector ensures that no personal customer information is transferred when using Dataverse and Microsoft Power Platform capabilities such as Power BI reports and other related solutions. The Power BI reports provide actionable insights on top of data. Each report provides a specific view of data across sales, customers, and products that can help make impactful merchandising, marketing, and supply chain decisions.  

“Sitecore OrderCloud delivers limitless commerce capabilities and opportunities to consolidate commerce channels into a single managed marketplace. The out-of-the-box integration with Microsoft Fabric unlocks the ability to be a forward-looking AI retail organization. Retail organizations can benefit from stateful services, reliable messaging, orchestration, monitoring, and security, while continuing to focus on their roadmap and strategic business objectives.” Steven Davis, Vice President of Engineering Commerce, Sitecore 

Make strategic product decisions with frequently bought together

Lastly with this release, the frequently bought together model is a data-driven tool that empowers retailers to make informed decisions about product placement and promotions. By analyzing point-of-sale (POS) data, frequently bought together identifies the combinations of products that are most often selected and purchased at the same time. This way, retailers can effectively promote cross-selling activity and boost joint sales by placing associated products closer together.  

Frequently bought together analytics enables retailers to: 

• Find the top revenue products and boost cross-sales by putting identified products closer. 
• Check the lowest revenue products and decide which ones to drop from the product catalogue. 
• Measure how past marketing actions, like new shelf layout or promotion performance, affected the sales of each item in a product group by comparing before and after sales revenues when purchased together. 

Learn more

MICROSOFT INTRODUCES PREBUILT AI SOLUTIONS FOR RETAILERSRead the blog 

• Join us at NRF 2024 from January 13 to 16, 2024 in New York City, New York to learn more about Microsoft Cloud for Retail’s cutting-edge AI technologies and how they can optimize your business.
• Join Shelley Bransten at the Microsoft Retail Digital Forum on February 6, 2024 for the How AI Unlocks Value for Retail session to learn about the research and gain insights into what is driving AI transformation among leading retailers.
• To get started, you can sign up here or learn more about our latest capabilities on the Microsoft Cloud for Retail homepage. 

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