Starbucks is building proprietary artificial intelligence to manage its inventory and maintenance systems. This initiative aims to reduce the company's dependence on software from Microsoft and IBM.
The project is part of a broader strategy to cut $2 billion in total costs. Management is currently reviewing the company's $400 million annual software budget.
Starbucks plans to roll out the new applications by the end of 2027 following a testing phase.
Shares of Microsoft and IBM declined in pre-market trading as investors reacted to the news. The market is weighing the risk of large corporations insourcing software development as AI tools become more accessible.