Wesfarmers, the prominent Australian retail conglomerate behind well-known brands such as Kmart and Officeworks, has entered into a multi-year partnership with Google Cloud to implement agentic artificial intelligence (AI) across its extensive portfolio. This groundbreaking agreement, announced on February 16, 2026, will enable the Perth-based company to deploy AI agents designed to enhance customer service and streamline internal processes.
The initiative aims to tackle the increasing operational complexity that comes with managing a diverse multi-brand retail group while also addressing consumer expectations for quicker and more personalized service. Rob Scott, Wesfarmers' managing director, emphasized the importance of responsibly expanding AI capabilities throughout various sectors of the business, including forecasting, design, and customer engagement. "As we expand the use of AI across areas such as forecasting, design and customer engagement, it's important that we do so responsibly, at scale and with the right partners," Scott stated.
Harnessing Google's Gemini Enterprise Platform
Under the terms of the deal, Wesfarmers will leverage Google's Gemini Enterprise platform to develop AI agents capable of reasoning and executing multi-step tasks. These AI agents will be instrumental in managing customer inquiries and automating internal workflows, ultimately improving the overall shopping experience for consumers. This approach is expected to significantly enhance the speed and quality of customer interactions across Wesfarmers' various brands.
One of the exciting features being piloted is the Search with OnePass, an AI-powered tool that allows customers to shop conversationally across different divisions, such as Kmart and Bunnings, in a single interaction. This innovation not only simplifies the shopping experience but also reflects Wesfarmers' commitment to integrating technology in a way that meets modern consumer demands.
Enhancing Internal Operations with AI
In addition to enhancing customer experiences, the deployment of AI agents will also extend to Wesfarmers' internal operations. Teams in various departments, including operations, engineering, marketing, and finance, will have access to Gemini Enterprise to assist with data analysis and automate routine administrative tasks. This shift is anticipated to free up valuable employee time, enabling staff to concentrate on high-value work that can further drive the company's growth.
"AI is fundamentally changing the retail sector, enabling companies to develop deeper connections with their customers with every interaction," remarked Thomas Kurian, CEO of Google Cloud. He highlighted that integrating Google's agentic AI across Wesfarmers' renowned brands is not just about digitizing the storefront but also about reimagining every customer touchpoint, thus enhancing overall operational efficiency.
Training for the Future: AI Upskilling Program
As part of this strategic partnership, Google Cloud will launch a custom AI upskilling program for Wesfarmers employees. This initiative aims to equip staff with the necessary skills to identify where AI agents can be effectively integrated into their daily tasks, ultimately improving customer service quality. The focus on training underscores the importance of human expertise in tandem with technological advancements.
Wesfarmers is not alone in its quest to harness AI technologies. In January 2026, Woolworths became the first retailer in the Asia-Pacific region to implement the Gemini Enterprise for Customer Experience platform, transforming its Olive chatbot into a proactive shopping companion. Other major Australian organizations, including Australia Post and ANZ, have also turned to Google Cloud's capabilities to enhance their operational processes, demonstrating a broader trend of digital transformation in the retail and service sectors.
Future Prospects for Wesfarmers and AI in Retail
The partnership between Wesfarmers and Google Cloud represents a significant milestone in the ongoing evolution of the retail industry. By adopting agentic AI, Wesfarmers is positioning itself at the forefront of the retail technology landscape, ready to meet consumer demands for efficiency and personalization. As the company moves forward with its initiatives, the retail landscape is likely to witness a shift towards more intelligent, responsive customer service experiences.
Wesfarmers' commitment to integrating AI solutions not only enhances its operational capabilities but also sets a precedent for other retailers to follow. As companies continue to explore the potential of AI technology, the future of retail holds promise for improved customer engagement and operational efficiency, heralding a new era of shopping experiences.