Starbucks Bets on Robots and AI to Brew a Customer Comeback

Starbucks is investing heavily in artificial intelligence and automation to speed service, support baristas, and restore growth – betting that technology can strengthen, not replace, human connection.

By Laura Bennett Published: | Updated:
Starbucks Bets on Robots and AI to Brew a Customer Comeback
As sales rebound after a two-year slump, Starbucks is betting that artificial intelligence and automation can improve efficiency without sacrificing the human touch. Photo: Starbucks

At some Starbucks drive-throughs, customers may still hear a friendly greeting, but the voice taking their order is no longer always human. Artificial intelligence is increasingly stepping in, quietly reshaping how the coffee giant operates as it works to regain momentum after years of uneven sales.

The shift is part of a broader push by Starbucks to integrate AI and automation across its business. The company has invested hundreds of millions of dollars in technology designed to speed up service, reduce operational friction, and support baristas with behind-the-scenes tasks. Early results suggest the approach is beginning to pay off. Starbucks recently posted its first U.S. same-store sales increase in two years, a notable turnaround in a market that generates roughly 70 percent of its revenue.

Technology is now embedded throughout the Starbucks workflow. Inside stores, baristas can rely on AI-powered virtual assistants to recall drink recipes, manage shift schedules, and answer operational questions in real time.

In back rooms, automated scanning systems handle inventory checks, replacing one of retail’s most time-consuming manual tasks and helping address out-of-stock issues that have frustrated customers. At select drive-through locations, AI systems are being tested to process orders, freeing employees to focus on drink preparation and customer interaction.

The company frames these tools not as replacements for workers, but as support systems. In a recent statement, Starbucks described AI as a way to “support the moments that matter,” arguing that technology should reduce distractions and allow staff to focus on human connection. New features under development include AI chat tools that help customers discover drinks based on preferences or mood, as well as scheduling options that allow orders to be timed in advance to minimize waiting.

The investment has not come without trade-offs. Starbucks’ spending spree – which also includes about $500 million to increase staffing levels – has weighed on margins, contributing to investor concerns and recent share price volatility. Management has pledged to find $2 billion in cost savings over the next three years, a goal that makes automation central to its long-term profitability.

Leading the effort is Brian Niccol, who took over in 2024 amid rising prices, labor tensions, and intensifying competition. Since then, he has paused price hikes, simplified the menu, set a four-minute service target, and cut thousands of corporate roles. Underperforming stores have been closed, and Starbucks has reduced its exposure to China by selling a large stake in the business there.

Despite the focus on technology, Niccol has repeatedly emphasized that Starbucks lost its way by prioritizing efficiency over experience. His turnaround plan includes a renewed emphasis on handwritten names on cups, more comfortable seating, ceramic mugs, and store redesigns aimed at restoring a neighborhood coffeehouse feel. Each store refresh can cost up to $150,000 and will take several years to complete.

To Niccol, the combination is not contradictory. Automation handles repetitive and invisible work, while baristas are meant to deliver warmth and speed at the counter. In that sense, Starbucks’ AI push mirrors a wider trend across retail and food service, where technology is increasingly used to stabilize operations and enhance consistency rather than replace frontline workers.

Whether robots and algorithms can help Starbucks fully recapture its cultural relevance remains uncertain. But for now, the company is betting that a carefully calibrated blend of automation and human touch can turn improved sales into lasting recovery.