Coca-Cola Signs $1.1 bn Tech Deal with Microsoft to Use Cloud and AI

Coca-Cola has signed a $1.1 billion five-year deal with Microsoft to use its cloud computing and artificial intelligence (AI) services.
Coca-Cola digital investment in campaignsMicrosoft did not reveal the breakdown of the $1.1 billion Coca-Cola deal in terms of AI services versus traditional cloud software.

Microsoft and Coca-Cola will jointly experiment with Azure OpenAI. That service uses technology from Microsoft-backed startup and ChatGPT creator OpenAI to let customers build chatbots and other AI services that run in Microsoft’s Azure cloud computing service.

Coca-Cola had in 2020 signed a five-year deal worth $250 million to use Microsoft’s cloud and business software.

Coca-Cola would test Microsoft’s Copilot offerings to see how the tools improve productivity for the beverage maker. Copilot is an AI assistant that can help summarize lengthy email discussions and build slide decks for business presentations, among its many functions.

The deal also includes Coca-Cola expanding its use of other, conventional Microsoft software such as Dynamics 365, which is used by sales professionals and competes against Salesforce, Reuters news report said.

Coca‑Cola said it has migrated all its applications to Microsoft Azure, with most major independent bottling partners following suit.

As a pioneer in AI adoption, Coca‑Cola has been innovating with generative AI for nearly a year and has already leveraged Azure OpenAI Service to reimagine everything from marketing to manufacturing and supply chain and beyond.

Coca‑Cola is exploring the use of generative AI-powered digital assistants on Azure OpenAI Service to help employees improve customer experiences, streamline operations, foster innovation, gain a competitive advantage, boost efficiency and uncover new growth opportunities.

“This new agreement builds on the success of Coca‑Cola’s partnership strategy with Microsoft, showing our commitment to ongoing digital transformation,” said John Murphy, president and chief financial officer of The Coca‑Cola Company.

The agreement reflects a significant step in advancing Coca‑Cola’s digital transformation, focused on providing expanded access to Microsoft’s cloud and AI platforms — as well as solutions such as Microsoft 365, Power BI, Dynamics 365, Defender and Fabric — to enhance efficiency and scalability while fostering innovation across the system.

“Our partnership with Microsoft is an important next chapter in Coca‑Cola’s journey toward a digital-first enterprise powered by emerging technologies,” Neeraj Tolmare, global chief information officer (CIO) for The Coca‑Cola Company, said.

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