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Tesco may use AI and Clubcard data to nudge shoppers towards healthier choices

September 18, 2024

Tesco, the UK’s largest supermarket chain, may soon use artificial intelligence (AI) and data from its Clubcard loyalty scheme to nudge shoppers toward healthier food choices, according to CEO Ken Murphy.

The move, designed to encourage healthier diets, could see customers being informed if they regularly buy items with high sodium content, with suggestions to swap them for healthier alternatives.

Murphy explained that AI could help monitor customers’ shopping habits and provide recommendations to improve their health, saying, “I can see it nudging you, saying: ‘look, I’ve noticed over time that in your shopping basket your sodium salt content is 250% of your daily recommended allowance. I would recommend you substitute this, this and this for lower sodium products to improve your heart health.’” He emphasized that this is “very simple stuff” with the potential to improve people’s daily lives.

While health campaigners may welcome such a move, particularly in light of the UK’s ongoing obesity crisis, privacy advocates have raised concerns. Jake Hurfurt, head of research and investigations at Big Brother Watch, criticized the idea, arguing that it represents a form of surveillance. “Tesco has no right to make judgments about what’s in our baskets or nudge us on what we should and should not be buying,” Hurfurt said.

Despite the concerns, Tesco clarified that it is not currently planning to roll out the AI-driven nudge system. However, given its dominant market share—holding nearly a third of the UK grocery market—and the 20 million customers subscribed to its Clubcard scheme, the potential impact is significant.

The proposal comes amid increased pressure on supermarkets to address public health issues. In 2022, the UK government introduced regulations to reduce the prominence of junk food in stores, and Labour leader Sir Keir Starmer has hinted at further public health measures, including a ban on energy drinks for children under 16 and supervised tooth-brushing in pre-schools.

Mr. Murphy also hinted that AI could be used to help Clubcard customers save money, with the system potentially advising them to wait for upcoming offers before making certain purchases. “Clubcard is literally doing their job for them and making their lives easier,” he said.

This development highlights the growing role of data in shaping customer experience and the broader debate around privacy. While Tesco insists that it does not sell individual customer data, estimates suggest the company generates significant revenue by anonymising and sharing insights with third parties. Tesco has reaffirmed its commitment to handling customer data responsibly, stating that no individual data is sold or shared.