Coca-Cola Sets Aside $1.1 Bn for Generative AI Use Cases

The Coca-Cola Company and Microsoft have entered into a five-year strategic alliance aimed at enhancing the former’s technology framework and embracing generative AI to boost innovation and productivity worldwide.

Coca-Cola has committed $1.1 billion to utilize Microsoft's Cloud services and its generative AI capabilities, marking a significant step in its tech evolution. This partnership positions Microsoft Cloud as Coca-Cola’s preferred global cloud and AI platform.

The collaboration will explore new technologies such as Azure OpenAI Service, creating innovative generative AI applications across Coca-Cola's business areas. Initiatives include integrating Copilot for Microsoft 365 to augment workplace productivity.

Leveraging GenAI across The Coca-Cola Company's use cases

“Our expanded partnership with Microsoft is an important next chapter in Coca‑Cola’s journey toward a digital-first enterprise powered by emerging technologies,” says Neeraj Tolmare, Senior Vice President and Global Chief Information officer for The Coca‑Cola Company. “Microsoft’s capabilities help accelerate our adoption of AI to create incremental enterprise value.”

Microsoft EVP and Chief Commercial Officer Judson Althoff highlights the partnership’s role in accelerating AI integration across Coca-Cola and its global network of independent bottlers.

Coca-Cola has already migrated all applications to Microsoft Azure, with major bottlers also transitioning. The company is innovating in areas like marketing, manufacturing, and supply chain through Azure OpenAI Service, and is exploring AI-powered digital assistants to enhance customer service and operational efficiency.

“This new agreement builds on the success of Coca‑Cola’s partnership strategy with Microsoft, showing our commitment to ongoing digital transformation,” says John Murphy, President and Chief Financial Officer of The Coca‑Cola Company. “Our partnership with Microsoft has grown exponentially, from the $250 million agreement we initially announced in 2020 to $1.1 billion today.”

This agreement extends Coca-Cola's access to Microsoft’s technological suite including Microsoft 365, Power BI, Dynamics 365, Defender, and Fabric, aiming to enhance system-wide efficiency, scalability, and continuous innovation.