Wesfarmers partners Google Cloud to expand AI in retail

Wesfarmers has signed a multi-year collaboration with Google Cloud to roll out so-called agentic AI experiences across several retail businesses, including Kmart, Officeworks, Priceline and OnePass.

The Australian conglomerate plans to use Google Cloud's AI products in customer-facing shopping journeys and internal support functions, extending an existing relationship between the two organisations.

Retail groups have been pushing harder on automation and personalisation as more transactions shift online and shoppers expect quicker service. Large multi-brand operators also face growing complexity in inventory management, customer service and marketing across multiple channels.

Wesfarmers said the collaboration is intended to meet expectations for fast, personalised service while reducing operational complexity across its retail portfolio. It also expects productivity gains for teams across its divisions.

"As we expand the use of AI across areas such as forecasting, design and customer engagement, it's important that we do so responsibly, at scale and with the right partners," said Rob Scott, managing director of Wesfarmers. "Google Cloud's capabilities will support the development of agentic solutions that enhance customer experiences and enable our teams to focus on higher-value work."

Customer experiences

One strand of the work centres on digital shopping. Wesfarmers plans to deploy Gemini Enterprise for Customer Experience to build tools for product discovery and recommendations, and to create a smoother flow from search through to post-purchase interactions.

Wesfarmers is also piloting a cross-divisional "agentic shopping" experience through Search with OnePass, which is designed to let customers search and shop conversationally across multiple Wesfarmers retail brands in one place.

Personalised shopping tools have become a core battleground for retailers, which are increasingly using generative AI systems to interpret natural language queries and map them to product catalogues. These systems typically sit alongside existing search and merchandising technologies, rather than replacing them, and depend on the quality of product data and customer context.

Support automation

Another area is customer support. Wesfarmers is working with its retail divisions on AI assistants aimed at faster, more personalised service. The companies said the tools differ from scripted chatbots by maintaining context across a conversation.

Customer service has been an early use case for generative AI in large consumer businesses, partly because it can be measured against handling time, resolution rates and customer satisfaction scores. Many retailers have started with limited deployments before expanding, given the risk of incorrect responses and the need for policy controls.

Staff tools

Internally, Wesfarmers has made Gemini Enterprise available to all retail divisions, with teams able to use it to analyse information and automate routine tasks. The company also linked the rollout to decision-making across operations, customer service, engineering, marketing and finance.

The move reflects a broader trend of large employers giving staff access to generative AI assistants while putting governance frameworks in place. Adoption often depends on training, internal guidelines and clear limits on data handling, as well as integration with existing systems.

Google Cloud CEO Thomas Kurian said the agreement reflects a wider shift in retail. "AI is fundamentally changing the retail sector, enabling companies to develop deeper connections with their customers with every interaction," he said. "By integrating Google's agentic AI across Wesfarmers' iconic brands, we aren't just digitising the storefront - we are helping them reimagine every customer touchpoint and automate their internal processes."

Skills programme

Wesfarmers is investing in training so team members can use AI "confidently, securely and responsibly". Google Cloud will deliver a custom upskilling programme for leaders and team members across several divisions, adapted for roles ranging from store-based teams to support centres.

The emphasis on training suggests Wesfarmers expects use to extend beyond specialist technology teams. Retailers that take this approach often need to adjust workflows and management practices as staff begin relying on AI for drafting, analysis and customer communication.

Wesfarmers employs more than 118,000 people across its businesses. Its portfolio spans general merchandise, office products, health and beauty retail, and a retail subscription program and shared data asset through OnePass, alongside industrial and resources operations.

The collaboration will roll out across Wesfarmers' retail divisions over multiple years, with pilots already under way through OnePass search.