Starbucks Is Serving Up Your Coffee with a Side of AI. What That Means for SBUX Stock.

Popular coffeehouse chain Starbucks Corporation (SBUX) is reportedly developing in-house software that uses artificial intelligence (AI) to decrease its reliance on outside software vendors. Starbucks depends upon a Microsoft (MSFT) system that tracks inventory and an International Business Machines (IBM) tool that manages maintenance. According to a Bloomberg report, the company’s AI-based software is set to roll out by the end of next year, which could reduce its dependence on these software giants.

Right now, Starbucks is spending about $400 million a year on software, which is expected to be reduced with the help of AI. The company is reportedly examining every contract and service as part of a wider plan to reduce costs by $2 billion. While software stocks did not take the news kindly, SBUX’s stock gained 2.54% intraday on July 9 as a result of this.