Starbucks (SBUX, Financials) gained 4.3% to close at $95.39 Wednesday after unveiling a generative AI assistant developed with Microsoft's Azure OpenAI platform. The move is part of the company's effort to streamline cafe operations and boost U.S. sales.
Dubbed “Green Dot Assist,” the tool will begin testing in 35 stores this month and is expected to expand across the U.S. and Canada in fiscal 2026. Baristas will be able to use a tablet to ask questions via voice or text, receiving real-time support on drink prep and equipment troubleshooting.
CEO Brian Niccol's turnaround strategy aims to shorten service times to four minutes and refocus the company on its core brand. The new AI assistant is designed to help staff work more efficiently by reducing reliance on manuals or internal systems.
Chief Technology Officer Deb Hall Lefevre said the assistant could eventually create IT tickets automatically or suggest shift changes, further integrating into store operations.
The Microsoft (MSFT, Financials) partnership comes nearly a year after CEO Satya Nadella stepped down from Starbucks' board. The system includes a grounding engine to prevent AI inaccuracies, or “hallucinations.”
The company also showcased next-generation Mastrena espresso machines and a simplified point-of-sale system that allows experienced baristas to get up to speed within an hour and helps personalize customer experiences.
Other restaurant chains have tested AI with varied outcomes. Yum Brands has partnered with Nvidia on AI vision tools, while McDonald's recently ended an AI drive-thru test with IBM due to performance issues.
