Albert Heijn, the Netherlands' largest supermarket chain, employs over 80,000 people across 700 stores. Facing a tightening labor market and a younger workforce, Albert Heijn set out to make store work more relevant, efficient, and attractive—especially for Gen Z employees. Their goal: leverage their Microsoft-based digital foundation to make labor-intensive store processes at least 1% more efficient, while positioning themselves as an employer of choice.

The initiative began with collaborative ideation workshops involving business leaders, technologists, and frontline staff. The team created employee personas and used empathy mapping to deeply understand daily frictions and pain points. Hypotheses were defined and validated through direct observation and feedback, ensuring the solution addressed real-world needs.

Albert Heijn, Microsoft, and EPAM used low-fidelity prototyping: in-store simulations where employees asked questions via handheld devices, and a backroom team quickly typed answers—mimicking the AI experience. This explorative MVP approach identified the most valuable use cases and allowed for rapid iteration. Employee feedback was integral; for example, the original speech-to-text interface was replaced with text-based input after staff found talking to phones awkward in front of customers.

The validated MVP evolved into "Appie", a generative AI assistant built on Microsoft Azure and Albert Heijn's Gen AI enablement platform. The assistant integrates with Albert Heijn's internal knowledge base, providing instant, accurate answers to work-related queries in natural language. The technical foundation is robust: secure, scalable, and designed for rapid deployment of future AI initiatives.

The assistant was piloted in eight stores, with plans to scale to 25 stores in summer 2025 and ultimately all 700 stores. Adoption was a key challenge, especially around the acceptability of employees using phones on the shop floor. Generational nuances were addressed by normalizing digital tool use and emphasizing the productivity benefits. Positive feedback from employees highlighted the assistant's ease of use and its role in making Albert Heijn a more attractive employer. Customers appreciated faster, more accurate service, and staff reported increased excitement and engagement.

The conversational assistant is now embedded in Albert Heijn's digital architecture, with productivity gains already observed among store employees. While it's too early for definitive metrics on job satisfaction and retention, initial signs are promising. The project is seen as a catalyst for further AI-driven innovation, with the robust technical foundation enabling faster, safer, and more cost-effective rollout of future solutions.

🐯 Tiger Takeaway:

Albert Heijn cracked the code on AI adoption by flipping the script—instead of imposing technology on employees, they let employees shape the technology. The result? A workforce that's not just more productive, but more engaged. For retail leaders, the lesson is clear: your frontline staff aren't obstacles to AI adoption; they're your secret weapon for getting it right.

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