An AI capability, not a pile of pilots.
A national multi-format retailer had fourteen AI pilots and two in production. The board wanted to know whether AI was a capability worth funding — or a collection of experiments. We rebuilt the operating model underneath.
Read the full case study
The question
The retailer — supermarkets, a fashion line, and a fast-growing e-commerce arm — had spent two years and a real budget on AI. Fourteen pilots ran across merchandising, supply chain, marketing, and store operations; two had reached production. The board's question was blunt: is this a capability we should fund as one — or fourteen experiments we should stop calling a strategy?
The diagnosis
We expected to find weak models. We didn't. Several pilots — demand forecasting, markdown optimisation, returns-fraud detection — were technically sound. What was missing sat underneath them: there was no operating model. No shared definition of what "good" meant, no route from a working pilot to a governed production system, and no single owner for any capability once the data-science team moved on.
The same customer and product data had been extracted and reshaped four separate ways by four separate teams. The problem was not the models. It was the absence of the thing models are meant to sit on.
The leap
We proposed they stop choosing between pilots and instead build the layer all of them needed: a thin AI foundation. A shared feature and data layer on the lakehouse they already owned; a single model-and-LLM gateway so every team called models the same way; and one evaluation harness, with retail-specific metrics, that every capability had to pass. Above it, a stage-gate — experiment, validated, governed-production — with a business owner and an engineering owner named at each gate. We did not pick winning pilots; we picked the five use cases that would share the foundation first.
The build
A ninety-day foundation came first: a feature store on the existing lakehouse, a model gateway fronting both classical models and LLMs, and an evaluation harness measuring what retail actually cares about — forecast bias, markdown margin impact, recommendation lift, fraud precision.
Then we re-platformed three capabilities onto it — demand forecasting, markdown optimisation, and personalised recommendations — pairing our engineers with theirs rather than delivering to them. The stage-gate became a fortnightly governance forum the client now runs without us.
The outcome
Twelve months in, AI capabilities in production had gone from two to nine. Time from a proposed idea to a governed production system fell from roughly nine months to about ten weeks — because the foundation and the eval harness were no longer rebuilt each time. Forecast accuracy improved enough to move real inventory; markdown margin recovered measurably. Most of all, the board stopped funding a list of experiments and started funding one capability, with a roadmap and named owners.
What we'd do differently
We would have stood the evaluation harness up in the first fortnight, not the second month — it became the spine of every later conversation. And we under-scoped the change management for store operations: a model is only adopted if the store manager trusts it, and that trust is built in person, not in a release note.