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4w ago

Starbucks to Build In‑House AI to Replace Microsoft and IBM Software

Starbucks plans to reduce annual software spending by rebuilding inventory and maintenance systems in-house.

Starbucks Builds In-House AI to Cut Software Costs
In September 2025, Starbucks walked into 11,000 stores with NomadGo’s inventory  AI tool that promised 99% accuracy and counted up to eight times faster than a human.
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Overview

  • A Bloomberg presentation reported July 9 revealed Starbucks is developing proprietary, AI-assisted replacements for Microsoft Dynamics 365 (inventory) and IBM TRIRIGA (maintenance).
  • The enterprise technology team is targeting some internal systems to be live by the end of 2027 if testing succeeds and development stays on schedule.
  • Starbucks says it spends about $400 million a year on software and is reviewing contracts as part of a broader $2 billion cost-cutting plan, with the tech division aiming to cut roughly $30 million this fiscal year.
  • The company is using AI-assisted coding to speed development and has tied AI adoption into some tech employee bonus metrics, which shifts how teams work and are evaluated.
  • News of the move drove premarket falls in enterprise software stocks and signals a wider trend of large firms insourcing AI, though past store-level AI trials have failed and operational risks remain before full rollout.