The retailer has signed a seven-year deal in which it will use Microsoft Azure’s cloud technology to modernize its systems and infrastructure, and also leverage its AI capabilities “to better meet customer demand,” Microsoft chief commercial officer Judson Althoff said in a press release. (The Logic)

Talking point: Canadian Tire said the deal will “rapidly” expedite its digital transformation, as more companies bet on the power of AI as a business strategy. The retailer’s modernization efforts also come as the threat of Amazon continues to loom large as the e-commerce and cloud juggernaut forges ahead with its Canadian expansion. Canadian Tire said last year it would invest $2.2 billion in digital growth, after seeing a boom in e-commerce purchases during 2020 COVID-19 lockdowns. Morningstar wrote earlier this week that Canadian Tire should further expand its digital order capacity to drive more customers into stores.