J Sainsbury PLC and Microsoft Corp have entered a five-year partnership to leverage AI technology.

The collaboration is part of Sainsbury's growth strategy, 'Next Level Sainsbury's.'

Focus areas include enhancing online shopping interactions, improving search functions, and using real-time data for in-store processes like shelf replenishment.

Sainsbury's aims to achieve £1 billion in cost savings over three years.

Expectations are set for up to 10% profit growth this year.

Sainsbury's shares rose by 1.8% after the announcement.

Investor confidence is high in the partnership's potential for innovation and transformation.

Financial details of the collaboration were not disclosed.