Wesfarmers’ new Microsoft and Google deals to expand AI rollout across Bunnings, Kmart

Wesfarmers is accelerating its rollout of artificial intelligence, signing new deals with Google and Microsoft that will see Bunnings and the WA conglomerate’s other retail arms become more reliant on the technology.

The “multi-year” agreements provide for the increased adoption of a range of technologies, notably those enabling the AI agents now helping time-poor and tech-savvy shoppers find the best deals.

AI shopping — known in the industry as agentic commerce — goes a step further than normal search engines, using AI chatbots that tap a customer’s sale history and personal preferences.

Since taking the helm of Wesfarmers in 2017, chief executive Rob Scott has championed the power of new technologies to reshape business.

In December, he told thewest.com.au that AI was “really taking product search and online shopping to another, far more sophisticated, level”.

“We recognise that customers want to shop with our businesses when and how it suits them, whether customers want to come instore, shop online, do click-and-collect or even shop and discover our products through large language models, we want to make that the most seamless, rewarding experience,” he said.

Under the Microsoft partnership, Wesfarmers will expand its adoption of the tech giant’s AI, data, and cloud technologies across Bunnings, Kmart, Target, Priceline and the Blackwoods industrial division.

Focus areas will include agentic commerce, as well as helping manage inventory and improving workflows across finance and marketing.

Similarly, the new Google pact will use Google Cloud’s agentic AI technology to personal shopping across the Wesfarmers businesses.

“As we expand the use of AI across areas such as forecasting, design and customer engagement, it’s important that we do so responsibly, at scale and with the right partners,” Mr Scott said on Friday.