ASOS strengthens partnership with Microsoft to drive innovation and efficiency
ASOS, the premier online fashion destination for 20-somethings, has announced a renewed three-year agreement with Microsoft, underscoring its commitment to operational excellence, efficiency, and data-driven decision-making.
This strategic partnership highlights ASOS’s drive to remain at the forefront of retail innovation through advanced technological adoption.
Embracing advanced AI solutions
As a pioneer in technological adoption, ASOS continues to leverage a suite of AI features integrated into Microsoft’s solutions. These include:
- Process Automation: Power Automate streamlines repetitive tasks, freeing up valuable time for more strategic initiatives.
- Enhanced Communication: Teams Premium provides automated meeting summaries, notes, actions, and live translations, ensuring efficient and effective communication.
- Effective Coding: Microsoft Copilot, including Copilot for Microsoft 365 and Copilot for GitHub, aids ASOS’s engineering teams in producing code more efficiently, a practice in place since early 2023.
Victoria Arden, Director of Technology Operations at ASOS, emphasised, “A core part of our business strategy is driving operational excellence within ASOS: making sure we’re as fast, efficient, and effective as we can be, and investing our time and resources in the projects that matter.”
Innovating with generative AI tools
The agreement with Microsoft enables ASOS employees to experiment safely with generative AI tools, aiming to reduce ‘busy work’ and foster greater creativity and insights. This approach allows ASOS to focus more on delighting its customers with enhanced shopping experiences.
Data-Driven decision-making
ASOS’s ongoing collaboration with Microsoft involves utilising AI services that bolster its operations. Since 2022, ASOS has relied on Microsoft Azure as its preferred cloud platform, enhancing its digital platforms with AI capabilities to maintain speed, efficiency, and data-driven decision-making.
Earlier this year, ASOS introduced an AI Stylist, an Azure OpenAI-powered feature that helps customers discover new looks through a conversational interface. This innovative tool aligns with ASOS’s brand and tone, providing a personalised shopping experience.
Papinder Dosanjh, Director of AI and Machine Learning at ASOS, highlighted, “AI and Machine Learning are already transforming how we work at ASOS, whether it’s supporting better demand forecasting, helping with data-driven decision-making, or powering our recommendation system – delivering billions of product recommendations to our customers per day.”
The Microsoft partnership
The deepening partnership with Microsoft is crucial for ASOS as it navigates current market challenges and seeks to enhance operational efficiency and innovation. By harnessing Microsoft’s advanced tools and AI capabilities, ASOS is well-positioned to drive growth, improve customer engagement, and maintain its competitive edge in the rapidly evolving retail landscape.
Olaf Akkerman, General Manager of Retail and Consumer Goods Industry at Microsoft UK, remarked, “ASOS has been an early adopter of AI and is using it in many innovative ways, such as delivering personalised shopping experiences through AI fashion stylists. This renewed commitment will bring huge productivity gains, freeing up time so that ASOS employees can focus on new, data-driven ways to better serve customers.”
Navigating market challenges
This news comes amid ASOS’s launch on TikTok Shop in March, aiming to reconnect with its core demographic and boost sales. By leveraging TikTok’s popularity, ASOS has successfully reached its target audience, with 57% of transactions coming from new customers. However, ASOS also faced a significant share price fall following the proposal of changes to its remuneration policy, designed to align with its ambitious growth plans.
