Coca-Cola Invests Over $1 Billion in AI with Microsoft

Coca-Cola has embarked on a transformative journey with tech giant Microsoft, pouring a substantial $1.1 billion into a collaborative effort to harness the power of artificial intelligence (AI).

by Faruk Imamovic
SHARE
Coca-Cola Invests Over $1 Billion in AI with Microsoft
© Getty Images/Justin Sullivan

Coca-Cola has embarked on a transformative journey with tech giant Microsoft, pouring a substantial $1.1 billion into a collaborative effort to harness the power of artificial intelligence (AI). This investment marks a significant phase in their partnership, which was initially forged with a $250 million agreement in 2020.

The new deal, signed for five years, aims to develop and integrate AI across Coca-Cola’s diverse business functions, leveraging Microsoft’s Cloud, Azure OpenAI Service, and other cutting-edge technologies. The ambitious project was announced on April 23, highlighting a strategy to experiment with Azure OpenAI Service and other Microsoft technologies.

The goal is to create innovative AI applications that could revolutionize various business functions. Coca-Cola's commitment to this technology underscores its strategic focus on digital transformation and operational efficiency.

Enhancing Operations and Productivity

One of the focal points of this partnership is the utilization of Microsoft Copilot and the Microsoft 365 AI assistant, aimed at boosting workplace productivity. Coca-Cola has already migrated all its applications to Microsoft Azure, indicating a deepening reliance on Microsoft's cloud capabilities.

Judson Althoff, Microsoft’s Executive Vice President and Chief Commercial Officer, noted the progress of this collaboration: "Through our long-term partnership, we have made significant progress to accelerate system-wide AI Transformation across The Coca‑Cola Company and its network of independent bottlers worldwide”.

This statement reflects the comprehensive impact that AI is expected to have across Coca-Cola’s global operations. Coca-Cola is exploring the use of generative AI-powered digital assistants to enhance customer experiences and streamline operations.

Neeraj Tolmare, Coca-Cola’s Senior Vice President and Global Chief Information Officer, emphasized the importance of this technological adoption: “Microsoft’s capabilities help accelerate our adoption of AI to create incremental enterprise value,” he stated.

Global AI Expansion

This partnership comes amid Microsoft's broader efforts to expand its AI footprint globally. On April 9, Mustafa Suleyman, Microsoft AI’s Executive Vice President and CEO, announced plans for a significant investment in the United Kingdom.

This involves setting up an AI hub to advance AI language models and their infrastructure, which further demonstrates Microsoft’s commitment to leading the AI industry. “There is an enormous pool of AI talent and expertise in the U.K., and Microsoft AI plans to make a significant, long-term investment in the region as we begin hiring the best AI scientists and engineers into this new AI hub,” Suleyman explained.

This strategic move not only aims to enhance Microsoft’s capabilities but also to foster collaboration across its global AI teams and partners like OpenAI.

Microsoft
SHARE