AI Business
1d ago
Starbucks develops AI tools to reduce dependence on Microsoft and IBM software
Jul 9, 2026
AI Summary
Starbucks is creating in-house software solutions using artificial intelligence to replace some applications from Microsoft and IBM. This initiative aims to cut costs and enhance efficiency as the company seeks to reduce its overall expenses by $2 billion.
- Starbucks is developing in-house software tools to replace applications from Microsoft and IBM, including inventory tracking and maintenance management systems.
- The company spends approximately $400 million annually on software and aims to reduce this expenditure as part of a broader cost-cutting strategy.
- Starbucks is on track to save about $30 million in its technology budget for the fiscal year, with $10 million coming from software spending reductions.
- The coffee chain has been encouraging its tech employees to utilize AI, incorporating its use into performance bonuses.
- Despite these developments, Starbucks has faced challenges with AI implementation, including reverting to manual inventory tracking after pulling an AI-powered system.
- The company has cut around 2,300 jobs since February of last year, including many in tech, and is establishing new offices in Nashville and India for tech staff.
starbucksaisoftwarecost-reductiontechnology