LONDON, U.K.: Tesco is stepping up its digital transformation by partnering with U.S. software firm Adobe to harness artificial intelligence for more targeted customer engagement and marketing.

Britain's largest food retailer said on April 13 that the collaboration would deepen its use of AI to analyse shopper data, as retailers increasingly turn to advanced technologies to drive revenue growth and improve efficiency.

A key part of Tesco's strategy is expanding its digital capabilities, including personalized engagement, rapid delivery service Whoosh, its online Marketplace platform, and retail media offerings.

Tesco said the partnership with Adobe would combine AI tools with data from its Clubcard loyalty scheme, which has been central to its recent market share gains.

The Clubcard program covers more than 24 million households in the UK and is one of the country's largest loyalty schemes, already offering tailored discounts and product recommendations.

By integrating Adobe's AI capabilities, Tesco aims to enhance its ability to anticipate customer needs and improve the relevance of content, offers, and overall shopping experiences across its channels.

Adobe engineers will work closely with Tesco's personalization and AI teams as part of the collaboration.

"Working with Adobe, we can be even more responsive to the needs of shoppers," Becky Brock, Tesco group customer digital transformation director, said.

Tesco, which holds a 28 percent share of Britain's grocery market, is due to publish its annual results on April 16.

Retailers globally are increasingly investing in AI to refine customer insights, optimize operations, and deliver more personalized shopping journeys as competition intensifies.