FairPrice taps Google Cloud to bring AI to the aisles

FairPrice Group (FPG) is doubling down on its partnership with Google Cloud to roll out a suite of agentic AI applications designed to reshape the retail experience for shoppers while boosting efficiency for employees.

The multi-year collaboration, part of FPG’s "Store of tomorrow" program, was unveiled at the launch of FairPrice Finest Punggol Digital District today.

Shoppers at the new outlet can interact with enhanced Smart Carts equipped with a multimodal AI assistant powered by Google Cloud’s Gemini API, Vertex AI, and Chirp 2 speech recognition. These carts allow customers to have natural conversations to receive personalised recommendations, recipes, and even ingredient pairings.

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For instance, when asked about yam paste, the assistant can recommend ready-to-eat options, highlight complementary products such as coconut milk, or generate a full ingredient list for making the dessert, all based on what is available in-store. The conversational smart carts will also be introduced at FairPrice Finest Sengkang Grand Mall, with Thomson Plaza slated for rollout in the fourth quarter of 2025.

Beyond groceries, FPG is also introducing specialised assistants to address specific needs. At the Unity pharmacy in Punggol Digital District, a wellness assistant provides tailored health advice, recipes, and shopping lists based on body composition analysis from in-store devices.

Wine shoppers, on the other hand, can tap their phones on NFC-enabled shelf labels to access a digital sommelier that suggests wines by type, price, and occasion, while also offering tasting notes and food pairings.

The partnership is not just customer-facing. Employees will also benefit from Google Agentspace, which enables access to pre-built and custom AI agents that automate complex tasks. FPG’s price and promotions teams have already deployed a creative agent that automates ad production using Google Cloud’s Imagen 4, Veo 3, and Gemini API.

The tool, which has been applied to campaigns such as "Price drop, buy now" and "Durian buffet", has reduced content creation costs by up to 100 times, according to the brand. Agentspace is also expected to support workflows across HR, customer service, store operations and more, with built-in security and compliance controls.

“At FairPrice Group, our purpose is simple: to make every day a little better for our customers. Our collaboration with Google Cloud and the launch of our 'Store of tomorrow' are testament to this commitment. The new AI-powered tools, from the smart shopping assistant to the personalised wellness assistant, are designed to make a shopper’s journey more seamless and intuitive," said Vipul Chawla, group CEO, FairPrice Group. 

He added, "These innovations don’t just ‘wow’ our shoppers, they also empower our employees to work more efficiently, so as to uphold our promise of providing affordable daily essentials for all. We believe technology should work for the good of our customers and we're excited to use it to bring shoppers an even better experience at what we consider to be a first-of-its-kind store in Southeast Asia, with Google Cloud's partnership and technology as a powerful enabler." 

In tandem, Thomas Kurian, CEO, Google Cloud said, "Google Cloud offers a highly differentiated and comprehensive portfolio of infrastructure, open platforms, models, tooling, and agents that are enabling organisations around the world to transform their business with AI. FPG’s use of these technologies, extending from the storefront to the back office, is an incredible example of how AI is driving innovation across every customer touchpoint and corner of the enterprise.”

Mark Micallef, managing director of Southeast Asia at Google Cloud, said FPG’s adoption of agentic AI positions it as a frontrunner in the retail sector, reflecting its commitment to enhancing customer experiences while empowering teams to innovate internally. He added that the solutions launched are among the first of their kind in Southeast Asia, built on Google Cloud’s open platforms, advanced search capabilities, and generative AI models.

Micallef noted that FPG’s AI transformation could serve as a blueprint for the future of retail, and that Google Cloud views the partnership as a long-term journey.

The push comes as AI becomes a consumer expectation across retail more broadly. According to DHL eCommerce’s "eCommerce trends report 2025", which surveyed 24,000 online shoppers across 24 markets, 81% of consumers in Asia Pacific want AI-powered features such as visual try-ons, voice search and smart shopping assistants.

While the study looked at online shopping as a whole, the findings underscore how quickly consumer expectations are evolving, and why supermarkets such as FairPrice are moving to integrate AI into the grocery experience. Nearly half (47%) of APAC consumers are already shopping via voice commands, reflecting a shift in habits that signals retailers who fail to invest in AI risk being left behind.

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