Starbucks Developing AI Tools to Replace Microsoft and IBM Software
Starbucks is developing proprietary AI-powered software tools to replace applications it currently purchases from Microsoft and IBM, according to a Bloomberg report citing an internal company presentation.
Starbucks Corp. (NASDAQ:SBUX) is building its own artificial intelligence-powered software tools that could replace applications it currently licenses from Microsoft Corp. (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM), Bloomberg reported Thursday, citing an internal company presentation.
Details
The report did not disclose a timeline or investment amount, but it indicates that Starbucks aims to reduce reliance on external software vendors and leverage AI to improve operational efficiency.
Context
This move aligns with a broader trend among large corporations to develop in-house technology solutions rather than depending on third-party vendors, especially in the fast-evolving AI space. Starbucks is not the first; companies like Amazon and Google have similarly built internal tools.
What It Means for Investors
If successful, Starbucks' in-house AI tools could lower long-term operating costs but may require significant upfront investment. The shift could also impact Microsoft and IBM's revenues if other companies follow suit.
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