The John Lewis Partnership has signed a £100m agreement with Google as it plans to cut data storage costs and boost its artificial intelligence efforts.

JLP plans to launch an AI customer service bot later this year and augmented reality services are “also in development”, according to The Times.

This comes following John Lewis’ “try-on” service that launched last month, allowing shoppers to virtually try new products by entering measurements before renting the item.

According to the newspaper, JLP sees AI as offering “more software per pound” as it contributes to reducing the cost of hiring other third-party software developers.

JLP chief technology officer Zak Mian told the newspaper that swifter analysis of the large quantities of data collected by the retailer would also mean that offers are “more timely, relevant and personalised” moving forward.

Mian said: “There’s nothing like laying on a mattress or sitting on a sofa in the shop, it’s about weaving technology and expert partners together.

“[As for] the idea of AI driving thousands of jobs out, for me it’s more a question of making people more productive.”

Speaking about whether Waitrose could move from self-service checkouts for customers to automatic services, such as those featured in Amazon Go stores, he added: “The jury’s out if customers want assisted service in a grocery shop or for it to be fully automated. A lot of our customers like our service of the fish, meat and cheese counter at the back of the shop – that makes a difference.”

He also said that the deal with Google “makes sense on a purely commercial basis”, while the real value is “the innovation that unlocks part of that broader transformation”.

JLP chief executive Nish Kankiwala said of the collaboration with Google: “Core to our strategy is building our technology infrastructure for the long term, drawing on the latest innovations to benefit our customers.”