Starbucks Starbucks CEO Brian Niccol stated the coffee company is heavily involved in artificial intelligence (AI) trials, sharing information about internal tools meant to help employees instantly and suggesting a future where the Starbucks app could predict customer orders before they're made.
TL;DR
- Starbucks is using AI for internal tools and trials to improve customer service and employee efficiency.
- The "green dot" system acts as a barista assistant, helping with machinery issues and drink preparation.
- "Smart Q" technology sequences orders from multiple channels to ensure faster and more precise beverage delivery.
- Future AI integration with the Starbucks app aims to predict customer orders and enable seamless voice ordering.
During his address at Dreamforce, Salesforce’s yearly tech conference held in San Francisco, Niccol emphasized mentioned that although Starbucks is presently concentrating on AI exploration and trials, the technology is already assisting the company in achieving its objective of becoming the “world’s greatest customer service company again.”
The most significant AI advancement currently deployed at scale within the company is a system called the “green dot,” that functions as a “kind of barista assistant.” This internal platform is vital for assisting store managers in overseeing day-to-day activities. When a team member faces an issue with machinery or requires assistance regarding “how to build a certain drink,” the green dot leverages AI to promptly provide the appropriate response or resolution. A spokesperson for Starbucks informed Coins2Day that green dot was piloted beginning in June and has been progressively expanding its availability since that time.
Niccol swiftly dismissed any ideas of an entirely automated workforce, despite progress in artificial intelligence. He stated “we’re not near that right now”, stressing Starbucks' commitment to a “more partners back into our stores to give people a great, not robotic” experience grounded in “real craft.”. Rather, AI's role is to boost productivity and enable human staff to complete duties with greater speed and effectiveness.
Behind-the-scenes sequencing
A crucial element of AI's role in helping baristas prepare coffee instantly and smoothing out service is an underlying technology known as “smart Q.”. This platform resolves the operational “chaos” that was present with orders, which could originate from four distinct channels: the drive-thru, delivery services, mobile order pickups, and in-person counter transactions. Niccol mentioned that upon joining Starbucks, he observed that orders were “all first in first, out—it created a lot of bottlenecks,”, a situation he's been diligently striving to fix.
Smart Q aims to eliminate these hindrances by scheduling tasks in the right sequence at the best possible moment. The objective is swiftness and precision: to guarantee that beverages are served within four minutes for patrons in the cafe or drive-thru, and punctually for mobile orders. Patrons might also observe this system's impact on digital displays showing order statuses like “received,”, “in progress,”, or “ready,”, aiding them in monitoring their drink's advancement.
Predicting the future and frictionless ordering
Looking ahead, Niccol identified the Starbucks app as a major focus for future AI integration, particularly in terms of predicting customer orders. Currently, the app offers a seamless feature allowing users to select their most recent order. However, the CEO sees a real opportunity to iterate on this feature, making the ordering process “even faster [and] even more seamless.”
Niccol imagines a future free from friction, possibly embedding AI systems so smoothly that customers won't need to launch the app. He proposed that a user could just speak into their phone, uttering "“Hey I need my Starbucks order I’ll be there in 10 minutes,”," and their drink would be prepared by the time they arrive. This capacity for greater “anticipating what we know you’re going to order,”, coupled with voice ordering, is how the brand intends to leverage AI for improved personalization and quicker service.
Under Niccol's leadership, initiated over a year ago, these AI efforts represent a significant strategic pivot. The organization is moving its core attention from operational efficiency and task completion to prioritizing an outstanding customer service encounter, ensuring baristas possess the necessary tools to craft customized beverages. As an illustration, in July Niccol called time on a strategy advocating for reduced face-to-face engagement and an increase in mobile-only pickup points, thereby reverting to the “third space” concept popularized during the tenure of the renowned Starbucks CEO, Howard Schultz. Niccol reinforced this approach with a $1 billion restructuring plan in October.
Starbucks also emphasized to Coins2Day that the business aims to streamline its offerings, concentrating on “fewer, more popular items, executed with excellence.” This approach is expected to create room for new ideas, shorten customer wait times, and enhance both quality and uniformity. Last July, the company launched the “Starting 5” initiative, a pilot program where five locations trial new concepts prior to widespread implementation, guaranteeing that these advancements are both practical and superior in quality.
Starbucks is also experimenting with AI across other facets of the business, Niccol said at Dreamforce, including vision, inventory, supply chain management, forecasting, and scheduling. However, these applications are not yet fully implemented at scale. Niccol said he believes AI is a definite opportunity to enhance efficiency, stating that they are already seeing a “big impact” in technology areas, such as the ability to generate code much faster.
For this story, Coins2Day generative AI assisted in creating the first version of this draft. An editor then confirmed the information's correctness prior to publication.