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Replacing Manual Taxonomy with AI at Tesco

Where AI and human judgement work together. A scalable way to categorise products without taking judgement away from the people who know them best.

AI & AutomationOperationsRetail Tech
01 / The assignment

Overview

With Marketplace approaching, Tesco's manual process could not keep up with the products it already had to categorise.

The launch would add millions of third-party listings. Products placed in the wrong category were harder to find through search and navigation. As Lead UX Designer in a five-person core team, I led the design of a system that categorised clear cases automatically and gave Online Operations colleagues the uncertain ones to review.

We shipped the MVP in six months, before Marketplace went live.

02 / The constraint

Understanding the problem

The manual process was already asking too much of the colleagues who kept product categorisation moving.

Even experienced Online Operations colleagues could categorise around 100 products a day alongside their other work, while more than 10,000 products arrived each week across Tesco's digital channels. Supplier descriptions were often incomplete or inconsistent, and some products could fit several categories. Colleagues had to work through that ambiguity as well as the volume.

To understand where the pressure sat, we followed products from their arrival in Tesco's systems through to Tesco.com and watched colleagues work. They described repetitive effort, difficult decisions and little feedback on their progress. With Marketplace approaching, hiring more reviewers would be costly and still would not keep pace with incoming products, either before launch or once Marketplace was live.

03 / The design process

Designing the handoff between AI and colleagues

We traced the existing process and tested ideas with real product data, returning to earlier decisions as we learnt more from colleagues.

  1. Trace the work

    Following products from arrival to Tesco.com showed where they passed between teams and where colleagues had to make judgement calls.

    • Stakeholder research
    • Service blueprinting
    • Workflow observation
  2. Examine the data

    Real product data showed which matches were clear and which still needed colleague judgement because descriptions were incomplete or several categories seemed plausible.

    • Product data analysis
    • Data modelling
    • Automation assessment
  3. Map the handoff

    The handoff had to let colleagues accept a good match or correct a bad one with enough context to decide. I worked through those decisions with product and engineering before shaping the interface.

    • Review flows
    • Edge-case mapping
    • Wireframing
  4. Test real workload

    Realistic product volume exposed where review would become slow or repetitive, and colleague feedback guided each revision.

    • Real-data prototyping
    • Moderated usability testing
    • Iterative refinement
  5. Deliver in phases

    Filtering slipped from the MVP. We made the trade-off and follow-up delivery date explicit, then shipped the feature three weeks later.

    • Priority scoring
    • Delivery planning
    • Phased release
04 / The approach

Giving people the difficult decisions

AI categorised clear matches automatically. Colleagues reviewed products where the right category was uncertain.

The review workspace put that handoff into practice. Colleagues could approve, reject or remap AI suggestions, and their corrections fed back into the model.

System model

A conceptual view of the system layers, with colleague judgement between AI categorisation and the customer experience.

Tesco automated taxonomy · the layers beneath the flow Exploded view of the Tesco automated taxonomy stack: product induction at the base, taxonomy infrastructure, AI categorisation, the colleague workspace where reviewers decide, and the Tesco.com customer interface on top, with the colleague workspace as the focal layer. Product inductionsources · data · metadata Product inductionsources · data · metadata Taxonomy infrastructurecatalogue · schemas AI categorisationmodel · suggestions · status Colleague workspace (HITL UI)dashboard · tables · review workflow Tesco.comcustomer interface · virtual shelves FOCAL LAYER The colleague workspace is where human judgement sits above the model.

Design principles

The review workspace needed to help colleagues make informed decisions, handle volume and pass corrections back into the system.

See the full picture

Put product details, the AI suggestion and the taxonomy in one view, so colleagues could judge a match without searching across screens.

Keep colleagues in control

Give reviewers clear ways to approve, reject or remap a suggestion when the proposed category was wrong.

Make review manageable at scale

Use batch actions for repeated decisions, with a route into detailed review for products that needed closer judgement.

Learn from corrections

Capture corrected mappings and feed them back into the model to improve future suggestions.

05 / The review experience

From queue to decision

The MVP let colleagues start with the workload, act together on routine products, or inspect an uncertain category in detail. The screens below span the MVP, later releases and tested concepts, not one before-and-after build.

MVP / Queue overview

See what needs attention

The queue overview grouped work into Automatically mapped, Require approval and Unmapped buckets, with counters and trends showing where review was needed before opening a product.

Review queue grouped into Automatically mapped, Require approval and Unmapped buckets
Review buckets. What needs attention, at a glance.
MVP / Bulk review

Clear repeated decisions

In the categorisation table, colleagues selected products with checkboxes and used a floating action button to approve, remap or reject them together. The separate location browser pictured below shipped later.

MVP / Detailed review

Examine one product

The three-pane Inspector kept product details, the AI suggestion and a taxonomy tree together. Colleagues could drag locations into place and sort their priority. The scores shown below came later; variant views were designed and tested.

After the MVP

More ways to focus the work

Filtering shipped three weeks later and the fuller dashboard eight weeks later. Other later-shipped tools included a separate taxonomy browser for scoped review, filters including proposition, location and confidence score, and quick lists. AI insights and richer review and performance metrics were designed and tested, but are not all confirmed as shipped.

MacBook mockup of the Automated Taxonomy dashboard annotated with review buckets, AI insights and performance metrics
Dashboard concept. An illustrative view of review queues, insights and performance measures; the figures shown are not the launch results.
06 / The outcome

Impact & reflection

The system went live across Tesco's online propositions before Marketplace launched, and the AI earned its place beside the people who reviewed its work.

£200MFirst-year Marketplace revenue opportunity supported
~72%Less manual effort after launch
99.2%Categorisation accuracy after launch

The hardest part of this project was never the technology. It was keeping the AI clearly helpful without making the colleagues who ran the established manual process feel replaced by it. Everything we designed carried that balance: plain status cues instead of confident-sounding numbers, batch actions that took the repetitive work off their desks, and a review loop in which their corrections changed what the AI suggested next.

Colleagues started as sceptics. They had built a way of working that kept products categorised for years, and doubted a machine could take on the parts they knew best. We answered that with evidence rather than promises: they watched the system flag the products it was unsure about, they saw their corrections change its behaviour, and they kept the final say on every decision. Within weeks, the reviewers who doubted it most were the ones planning their day around it.