Starbucks CEO Brian Niccol confirmed that the coffee giant is deeply immersed in artificial intelligence (AI) experimentation, revealing details about internal systems designed to assist staff in real time and pointing to a future where the Starbucks app could soon anticipate customer orders before they are even placed.
Speaking at Dreamforce, Salesforce’s annual technology summit in San Francisco, Niccol emphasized that while Starbucks is currently focused on AI learning and experimentation, technology is already helping the company execute on its goal of becoming “the world’s largest customer service company once again.”
The most impactful AI development currently at the company is a tool known as “green dot,” which acts as a “sort of barista assistant.” This internal system is crucial in helping store leaders manage daily operations.
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If a partner encounters an issue with equipment or needs guidance on “how to put together a certain drink,” Green Dot uses AI to quickly deliver the correct answer or solution.
A Starbucks representative told “Fortune” that the green dot was tested in a pilot phase starting in June and has been implemented more widely since then.
Despite advances in artificial intelligence, Niccol was quick to dismiss any notion of an all-robotic team, saying that “we’re not close to that right now” and emphasizing that Starbucks has focused on putting “more partners back in our stores to give people a great, non-robotic experience,” rooted in “authentic artistry.”
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According to him, AI is being used to unlock productivity and help human employees perform tasks faster and more efficiently.
Working behind the scenes
A key component of how AI helps baristas make coffee in real time and reduce service issues is a behind-the-scenes technology called “Smart Q.”
This system addresses the operational “chaos” that previously existed — orders can come in four different ways: drive-thru, delivery, pickup and counter. When he arrived at Starbucks, Niccol said he discovered that orders were all filled on a first-come, first-serve basis—and that created a lot of bottlenecks.” He’s been working to improve that.
Smart Q works to smooth out these bottlenecks by prioritizing the right order at the right time. The goal is speed and accuracy: ensuring drinks are delivered in under four minutes to customers in the coffee shop or drive-thru, and on time for mobile orders.
Customers can also see evidence of this system through digital screens that display order status as “received,” “in progress” or “ready,” which helps consumers track the progress of their drink.
Predicting the future and ordering without obstacles
Looking ahead, Niccol identified the Starbucks app as a key focus for future AI integrations, particularly in terms of predicting customer orders.
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Currently, the app offers an ongoing feature that allows users to select their most recent order. However, the CEO sees a real opportunity to improve this feature, making the ordering process “even faster [e] even more continuous.”
Niccol said he envisions a future where obstacles are completely removed from the experience, potentially integrating AI-driven systems so seamlessly that customers may not even need to open the app.
He suggested that a user could simply speak into their phone, saying, “Hey, I need my Starbucks order, I’ll be there in 10 minutes,” and the drink would be ready upon arrival.
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This ability to better anticipate what the customer will order, along with the implementation of voice ordering, is where the brand plans to utilize AI to improve personalization and speed.
These AI initiatives are part of the broader strategic shift under Niccol, who took over as CEO more than a year ago.
The company is shifting its primary focus from efficiency and tasks to a renewed emphasis on delivering an exceptional customer service experience by ensuring baristas are well-equipped to deliver personalized drinks.
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For example, in July, Niccol ended a strategy that emphasized less in-person interaction and more pickup locations made famous under legendary Starbucks CEO Howard Schultz. Niccol reinforced the strategy with a $1 billion restructuring plan in October.
At the same time, Starbucks emphasized to Fortune that the company is working to simplify its menu, focusing on “fewer, more popular items, executed with excellence.” This should open up space for innovation, help reduce wait times and improve quality and consistency.
In July, the company introduced the “Starting 5” program, in which five coffee shops test innovations before they are rolled out nationally, ensuring the new offerings are sustainable and high-quality.
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Starbucks is also experimenting with AI in 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 increase efficiency, stating that they are already seeing a “huge impact” in areas of technology such as the ability to develop systems much more quickly.
Fortune used generative AI in this story to help with an initial draft. An editor checked the information for accuracy before publication.
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