Starbucks is developing AI-driven software to replace Microsoft’s inventory tracking system and IBM’s maintenance management tool, potentially launching by late 2027. The move targets reductions in the company’s $400 million annual software spend as part of a broader $2 billion cost-cutting initiative.
Starbucks plans to build proprietary AI applications to substitute its current Microsoft inventory tracking system and IBM maintenance management tool, reducing dependence on external vendors and platform licensing.
The coffee chain spends roughly $400 million annually on software and has set targets to cut $10 million from software expenses and $13 million by reducing contracted professional services, feeding into a wider $2 billion expense reduction drive.
Some internally developed platforms could be deployed by late 2027 pending testing, with AI-assisted coding central to development; Starbucks has realigned its tech workforce across new Nashville and India offices while reducing about 2,300 jobs since February 2025.
