Overview
- Internal materials first reported by Bloomberg and published Thursday show Starbucks is developing AI-powered systems to replace a Microsoft inventory platform and an IBM maintenance-management tool, and the disclosure moved IBM, ServiceNow and Salesforce shares lower while SBUX rose.
- The enterprise technology unit is targeting about $30 million in budget reductions this fiscal year, with roughly $10 million from lower software spending and about $13 million from reduced use of outside contractors.
- Starbucks has formalized AI use in some technology employee bonus metrics and used AI-assisted development on the maintenance-management replacement, according to the presentation.
- The company says some internally built systems could be deployed by the end of next year if testing and validation succeed, signaling the shift is conditional rather than immediately final.
- The effort follows multiyear in-house projects such as a replacement for Oracle Simphony and comes as Starbucks has cut about 2,300 positions since last February while expanding tech offices in Nashville and India, a mix that changes vendor revenue risk and the work lives of its tech staff.