Friday, February 13, 2026
Wesfarmers and Microsoft have announced a multi-year strategic partnership to accelerate AI-powered innovation, expand cloud adoption, and drive digital transformation across Wesfarmers’ businesses in Australia and New Zealand. Through this collaboration, both companies will work together to embed advanced AI technologies and develop intelligent solutions that improve productivity, enhance customer experience, and support long-term business growth.
As part of this partnership, Wesfarmers will significantly expand its use of Microsoft’s AI, cloud, and data technologies. These include Microsoft Cloud, Azure OpenAI, Microsoft 365 Copilot, and Microsoft Copilot Studio. Consequently, several Wesfarmers divisions, including Bunnings, Kmart Group, Blackwoods, and Priceline, will gain access to powerful AI tools designed to streamline operations and improve efficiency. By integrating these technologies, Wesfarmers aims to empower employees, improve customer interactions, and deliver greater value across its retail and industrial operations.
One of the key focus areas involves advancing agentic commerce through AI-powered digital storefronts built using Copilot. These intelligent platforms will help businesses automate customer engagement and deliver more personalized shopping experiences. Additionally, the partnership will focus on optimizing supply chain operations. By combining enterprise data with AI-powered agents, Wesfarmers can improve demand forecasting, manage inventory more efficiently, and ensure better product availability. As a result, customers will benefit from faster service and improved product access, while the company reduces operational costs and complexity.
Furthermore, the partnership will help accelerate productivity across essential business functions such as engineering, finance, and marketing. AI agents will automate repetitive tasks, assist with workflows, and provide actionable insights. Therefore, employees can spend more time focusing on strategic work rather than manual processes. In addition, Microsoft’s AI tools will improve access to organizational data, allowing teams to quickly find information, analyze performance, and make informed decisions.
Rob Scott, Managing Director of Wesfarmers, highlighted the impact of the partnership, stating:
“Our partnership with Microsoft is supporting our increased use of AI across the Group and we are already seeing the benefits, particularly at a team member level with the use of Copilot,” said Wesfarmers Managing Director Rob Scott. “This agreement continues our collaboration with Microsoft including, critically, expanding innovative cloud services in priority areas. This will help support our team member productivity and improve the customer experience.”
This partnership builds on an already strong relationship between the two companies. Previously, Microsoft provided Copilot licenses, AI training, and an AI-powered assistant for Bunnings’ store teams. This assistant enables employees to quickly access product information, company knowledge, and operational updates. Consequently, team members can spend less time searching for information and more time assisting customers effectively.
Wesfarmers also plans to expand its Microsoft 365 Copilot usage significantly, which has already delivered measurable productivity improvements in 2025. Microsoft will continue supporting Wesfarmers by providing engineering expertise, deployment frameworks, and governance models to ensure smooth AI implementation.
Jo Dooley, Vice President of Enterprise at Microsoft Australia and New Zealand, emphasized the partnership’s strategic importance, stating:
“This expanded partnership with Wesfarmers opens a new chapter for retail innovation for Australia and New Zealand. By harnessing the power of Microsoft’s AI, data, and cloud technologies, we are proud to support Wesfarmers’ mission to unleash productivity, improve customer experience, and enrich customer loyalty across the enterprise. Together, we aim to will deliver scalable, responsible and secure AI solutions that improves employee and customer experience and sets a new benchmark for transformation across the retail sector,” said Jo Dooley, Vice President of Enterprise, Microsoft Australia and New Zealand.
Overall, this partnership positions Wesfarmers to become a fully AI-powered enterprise. By leveraging Microsoft’s advanced AI ecosystem, Wesfarmers aims to enhance operational efficiency, strengthen customer relationships, and drive sustainable business growth across its diverse portfolio.
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