Starbucks is developing proprietary AI-based tools to replace Microsoft’s inventory-tracking system and IBM’s maintenance-management software, with some modules expected to launch by late 2027 after internal testing. The initiative aims to cut the company’s $400 million annual software spend as part of a broader $2 billion cost-reduction program.
Starbucks is building AI-driven platforms to replace its existing Microsoft inventory-tracking system and IBM maintenance-management tool, leveraging AI-assisted coding to accelerate development. The company expects initial modules to complete testing and launch by the end of 2027, subject to performance and reliability benchmarks.
This AI project is a key element of Starbucks’ broader plan to cut $2 billion in costs, targeting a $400 million annual software budget. For the fiscal year ending September, the enterprise technology team aims to reduce spending by about $30 million, including $10 million saved on software licenses and $13 million through reduced contractor services.
To support the internal development push, Starbucks is consolidating tech roles into new offices in Nashville and India while maintaining a core team at its Seattle headquarters. Since February 2025, the company has eliminated roughly 2,300 jobs and continues reviewing technology contracts to drive further efficiencies.
