Starbucks to roll out Microsoft Azure OpenAI assistant for baristas
Starbucks plans to roll out a generative AI assistant created with Microsoft Azure's OpenAI platform to 35 locations this month as part of its strategy to simplify baristas' jobs and speed up service in its cafes.
The coffee chain showed off the new technology to more than 14,000 North American store managers at its Leadership Experience in Las Vegas on Tuesday. A broad launch of the "Green Dot Assist" platform across the U.S. and Canada is slated for the company's fiscal 2026, which starts in the fall.
The three-day event comes as Starbucks pushes to revive its sluggish U.S. sales and "get back to Starbucks," as CEO Brian Niccol has described the effort since he took the role last year. Niccol's priorities include slashing service times to four minutes per order. Quick, accurate answers to barista questions could help achieve that goal.
"It's just another example of how innovation technology is coming into service of our partners and making sure that we're doing all we can to simplify the operations, make their jobs just a little bit easier, maybe a little bit more fun, so that they can do what they do best," Starbucks Chief Technology Officer Deb Hall Lefevre told CNBC.
Instead of flipping through manuals or accessing Starbucks' intranet, baristas will be able to use a tablet behind the counter equipped with Green Dot Assist to get answers to a range of questions, from how to make an iced shaken espresso to troubleshooting equipment errors. Baristas can either type or verbally ask their queries in conversational language.
As the AI assistant evolves, Starbucks has even bigger plans for its next generation. Those ideas include automatically creating a ticket with IT for equipment issues or generating suggestions for a substitute when a barista calls out of work, according to Lefevre.
Since OpenAI launched ChatGPT in late 2022, companies have been trying the implement generative artificial intelligence in their own operations, envisioning the AI hype can cut expenses and maybe even boost their stock prices. Walmart and JPMorgan Chase are among the corporate giants that have rolled out AI assistants for their workforce.
But chatbots aren't always a perfect solution. They can sometimes provide inaccurate answers, known as "hallucinations," which could mean another headache instead of an easy resolution. Lefevre said that the company's partnership with Microsoft includes a grounding engine that ensures the accuracy of the information provided.
Other restaurant companies have also been looking to AI to simplify their restaurant workers' jobs and improve operations. For example, Yum Brands has partnered with Nvidia to roll out AI order-taking, Nvidia-powered computer vision and restaurant performance assessments fueled by AI. But AI agreements haven't always been successful; McDonald's ended its partnership with IBM after its test of AI drive-thru order taking didn't meet expectations.
Other new technology on display at the Leadership Experience includes the latest generation of Starbucks' Mastrena espresso machines and a more intuitive point-of-sale system.
Lefevre said tenured baristas have been learning to use the new POS in as little as an hour. Plus, the technology can offer personalized recommendations and loyal customers' repeat orders, helping Starbucks achieve the personalized touch it's looking to bring back to its cafes.
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