Japan’s SoftBank is partnering with Microsoft to develop robots that can interact with customers and improve the shopping experience.

Japan’s third largest mobile player said the first phase of the cooperation will be to integrate Microsoft’s cloud-computing technologies into SoftBank’s ‘Pepper’ robot to help retailers improve customer service, the China Post reported.

Pepper, which SoftBank claims is the world’s first personal robot that can read emotions, was launched commercially in Japan in February. It is priced at JPY198,000 ($1,600). SoftBank uses the robots in some of its retail shops in Japan.

The robots are manufactured by Taiwan’s Hon Hai Precision (better known as Foxconn).

SoftBank said cloud-computing technologies will allow the robots to use facial and speech recognition to assist customers and will be able to make shopping recommendations.

SoftBank announced last June it was teaming up with China e-commerce giant Alibaba and contract manufacturer Foxconn to set up a robot venture to sell the human-like robot globally. SoftBank would have a 60 per cent stake in the venture, while Alibaba and Foxconn would each have a 20 per cent interest.

Watch our interview with Pepper the Robot at last month’s Mobile World Congress here.