Starbucks is developing in-house AI tools to replace its IBM maintenance management software, targeting launch by end of next year as part of a broader $2B cost-reduction drive. The coffee chain aims to cut roughly $10M in software spending this fiscal year from its $400M annual software budget.
Starbucks is designing an internal AI-assisted coding platform to replicate and replace the IBM maintenance management tool currently used for equipment upkeep, reflecting its push to reduce reliance on external software providers.
With Starbucks spending roughly $400M on software annually and planning to eliminate $10M in software costs this fiscal year, IBM stands to lose a portion of licensing and service revenue from this major enterprise client.
The new AI tools are slated for testing and potential rollout by the end of next year, contingent on validation against real-world performance requirements and alignment with the company’s inventory tracking systems.
This initiative feeds into Starbucks’ broader $2B cost-reduction target, which includes a $30M reduction in its enterprise technology budget and $13M saved through contractor cuts, underscoring its shift toward in-house solutions.
