Starbucks Taps GenAI to Build In-House Software, Aims to Drop Microsoft and IBM Tools

Starbucks is using generative AI to write software in-house, with the goal of retiring a Microsoft inventory tracking system and an IBM tool for equipment maintenance. The company said the move is part of a broader effort to reduce reliance on third-party vendors and tailor technology to its specific operations.

The AI-assisted development process allows engineers to generate code more quickly, cutting the time needed to build and test new applications. Starbucks plans to deploy the replacements across its company-operated stores in the United States, with a rollout expected to begin in the coming months.

A spokesperson said the new systems will provide real-time data on inventory levels and equipment health, helping store managers make faster decisions. The company also expects to save on licensing fees and reduce integration issues that arise from using external software.

Starbucks has been expanding its use of artificial intelligence in recent years, including for personalized marketing and supply chain planning. The latest initiative marks one of the first instances where AI is being used to develop core operational tools rather than just enhance existing ones.

The company did not disclose the names of the AI tools used or the number of engineers involved in the project. It also did not specify a timeline for fully discontinuing the Microsoft and IBM systems.