Over the past five years, more than 100 AI models have been put into production within the Axfood Group to streamline and enhance processes, workflows, and customer interactions. Today, these AI models are already making many and significant decisions, and the Group’s use of AI is further accelerating.
Björn Blomqvist, Head of AI Strategy at Axfood.
Over the past five years, more than 100 AI models have been put into production within the Axfood Group to streamline and enhance processes, workflows, and customer interactions. Today, these AI models are already making many and significant decisions, and the Group’s use of AI is further accelerating.
For years, Axfood has been at the forefront of AI development. In 2019, the company introduced its first significant in-house AI model. This model was built on a new cloud-based AI platform, replacing an external system. The impact was immediate, resulting in substantial efficiency gains.
– One notable achievement was a 30% reduction in errors in our sales forecasts for promotional campaigns. By allowing the AI model to autonomously identify patterns and leverage the vast amount of data at our disposal, we unlocked new potential. It marked the first time we let our data sing freely. The model now generates sophisticated forecasts, ensuring our stores automatically order the right quantity of goods to meet customer demand while maintaining a delicate balance to avoid excess inventory and waste, says Björn Blomqvist, Head of AI Strategy at Axfood.
Björn Blomqvist has been instrumental in developing AI models within the Axfood Group for five years and was a part of the inception of the very first model. Today, Björn leads and coordinates the overall AI efforts at Axfood in his role as Head of AI Strategy.
Optimising large parts of Axfood's operations
– Over the past five years, we have invested in the future while simultaneously delivering value to our customers. Our journey has been substantial, with a strong focus on building scalability into our AI model development. By using the same code to address multiple problems, we simplify maintenance and enable continuous improvements. We have tested over 100 AI models since creating the first one, and now we have more than 50 well-functioning models that consistently enhance and personalise our operations, says Björn.
These AI models are utilised across various aspects of Axfood's operations. In addition to improving the Group's sales forecasts, AI is employed in warehouse operations for planning and optimisation. It also enhances assortment management, campaign effectiveness, transport optimisation, and contributes to reducing food waste. Furthermore, AI plays a role in personalising customer interactions, both in e-commerce stores and communication channels.
Accelerating AI within Axfood
Today, many departments within the Axfood Group are already working with AI in various ways. Axfood's AI models vary in complexity, ranging from simpler models with intricate logic to the group's most advanced models based on the latest in machine learning. All these AI models are written and developed by Axfood's data scientists. Going forward, usage will expand even further as more employees gain access to tools and models to further streamline and optimise Axfood's processes, workflows, and customer interactions.
– Now we are ready to accelerate the work we do in analytical AI so that more processes within the Group can benefit from its power, which is very exciting. Those working with AI within Axfood have the latest tools and are free to work on model development. Axfood IT has created conditions to make it easy to use our AI platform and data, allowing users to focus on formulating and solving problems, says Björn.
At the same time, Axfood is also building its own AI models that utilise generative AI. These include tools for image generation or chatbots.
– We have already made significant progress in AI usage within Axfood, but now there will be even more happening, and it will happen faster – just hop on board, says Björn Blomqvist.
