The billionaire Issa brothers have turned to artificial intelligence (AI) to improve boardroom decision-making at Asda, as they aim to reverse a slump in sales at the struggling supermarket.
The retail giant has drafted in tech experts at London start-up Harley, who have been tasked with developing AI tools to help Asda executives make “quicker and more informed decisions”.
Bosses will be able to use the technology to ask a range of questions during boardroom meetings, such as how the weather affected sales in a specific store.
Harley said it had fed in data on availability across Asda’s stores, meaning its AI system could also map what happened to sales if certain items were running low in stock.
In an announcement on Tuesday, Hayley said the AI tool will initially be focused on supporting “executive decisions in high-pressure environments like board meetings”.
Alex Banks, chief executive of the start-up, said the “generative AI” tools would give Asda a competitive advantage over its rivals.
It comes amid mounting pressure on the supermarket to push through changes to boost its dwindling market share.
Figures from industry group NIQ last week revealed sales at the supermarket were down 2.7pc in the 12 weeks to May 18, compared to the same period a year earlier.
Asda was the only grocer to record a drop in sales over the period, meaning its market share slipped to 12.4pc, down from 13.3pc a year earlier.
Asda’s market share has been on a downward spiral ever since a debt-fuelled takeover by the billionaire Issa brothers and TDR Capital in 2021.
At the time of the £6.8bn deal, it held a 14.8pc share of the grocery market.
In recent years, Asda has been led by Mohsin Issa, one of its co-owners.
However, he said earlier this year that he was preparing to step back from the day-to-day running of the business.
City headhunters have been hired to select his replacement, although a successor has not yet been found.
Michael Gleeson, chief financial officer of Asda, said in April: “The search continues. It’s not just a UK search. We’re making sure that we get the right person to do the job.”
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