US – The Coca-Cola Company has entered into a US$1.1 billion agreement with technology giant Microsoft to bolster its cloud computing infrastructure and leverage the power of generative AI across its global operations.
Announced as a five-year “strategic partnership,” the collaboration between Coca-Cola and Microsoft aims to explore innovative applications of technology, particularly Azure OpenAI Service, to drive advancements in various business functions.
This partnership signifies Coca-Cola’s commitment to embracing cutting-edge solutions to enhance efficiency and customer experiences.
As part of the deal, Coca-Cola has transitioned all its applications to Microsoft Azure, with many major independent bottling partners following suit.
Additionally, the company has been actively exploring the capabilities of generative AI for nearly a year, with Azure OpenAI Service already implemented across multiple areas, from marketing to manufacturing and supply chain management.
Judson Althoff, Microsoft’s chief commercial officer, expressed pride in supporting Coca-Cola’s AI transformation efforts, emphasizing the significant progress made in accelerating systemwide innovation. The partnership reflects Coca-Cola’s dedication to leveraging technology to drive business growth and operational excellence.
Coca-Cola is now exploring the integration of generative AI-powered digital assistants through Azure OpenAI Service to enhance employee productivity and streamline operations, further underscoring the company’s commitment to digital transformation.
John Murphy, CFO of The Coca-Cola Company, highlighted the strategic importance of the partnership with Microsoft, emphasizing the company’s ongoing digital evolution and commitment to leveraging technology for future success.
“This new agreement builds on the success of Coca-Cola’s partnership strategy with Microsoft, showing our commitment to ongoing digital transformation,” Murphy said.
This latest agreement builds upon Coca-Cola’s existing partnership with Microsoft, which dates back to 2020 when the company signed a US$250 million deal to utilize Microsoft’s cloud and business software solutions.
The collaboration presents an opportunity for both companies to explore new revenue streams and technological advancements.
Meanwhile, Coca-Cola HBC, a major bottler operating across Europe and Africa, is also investing in technology to optimize operations and enhance sustainability.
Chief Digital and Technology Officer Mourad Ajarti highlighted the company’s plans to leverage Microsoft’s digital twins technology to improve energy and water efficiency across its operations.
He said: “We have a plan that we are executing against to get into 50-plus lines by 2027, applying exactly the same digital twin technology and AI technology on top of every line that we have.
We are talking energy efficiency, water efficiency, changeover efficiency, in a way that not only delivers productivity from an operation point of view but also sustainability because we are cutting the usage of energy, we are cutting the usage of water.”
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