Artificial Intelligence at Ahold Delhaize and its brands
Artificial Intelligence (AI) and Generative AI are revolutionizing industries worldwide. Where AI can perform tasks that typically require human intelligence, such as problem-solving, GenAI focuses on generating new content like text or algorithms by learning from existing data. Both AI and GenAI impact every domain of our business – customers, operations, our people, and the planet. Building on over 150 years of innovation, we recognize AI as a pivotal supporting technology to empower our associates and serve our customers better, without ever losing the human touch. We leverage AI across our organization to navigate the complexities of our operations, which includes our 16 brands’ diverse customer base (both offline and online) and more than 402,000 associates across nine countries and over 7,000 stores.
We are investing in AI and Generative AI solutions and integrating these into our operations to drive our strategic priorities, thereby improving customer experiences and optimizing our operations. A few examples:
- Improving customer experiences: By utilizing semantic search technology, several of our brands enable customers to search for products based on intent rather than only keywords. This results in more relevant product recommendations and a personalized online shopping experience.
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Boosting operational effectiveness: In the competitive grocery industry, where customers expect swift home deliveries, accurate demand forecasting is crucial. Ahold Delhaize and our brands employ AI and machine learning algorithms to predict customer demand and order volumes with high accuracy. These predictions help optimize labor scheduling and operational efficiency, leading to cost savings and improved service. By continuously refining these algorithms and integrating generative AI, we can enhance e-commerce fulfillment processes, ensuring timely and cost-effective order delivery while supporting growth ambitions in the digital marketplace.
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Enhancing healthy communities and planet: Discounting products nearing expiration to optimize revenue and reduce food waste is not something new. At our Dutch brand Albert Heijn, we've enhanced this process with AI. Algorithms calculate the optimal discount and re-evaluate it every 15 minutes for each product. In 2024, this approach has already saved over 250 tons of food waste, and we expect this amount to continue increasing for years to come.
Ahold Delhaize’s extensive scale and unique market presence allows us to utilize local insights, anticipate customer needs, and implement successful solutions across different markets. Partnerships, such as with the Dutch independent non-profit initiative Kickstart AI, have accelerated the development of our innovative AI solutions.