Starbucks brews up AI to support baristas instead of replace them

Customers weren’t sold on automation, so the search for ROI continues

After lackluster results from customer-facing automation, Starbucks is now redirecting its tech ambitions toward helping its own employees.

The coffee giant announced a new generative AI initiative called "Green Dot Assist" at its Leadership Experience event in Las Vegas yesterday. Described as a "coffeehouse companion" for baristas, the AI assistant is due to be trialed at 35 Starbucks locations.

According to the company, Green Dot Assist will be available to baristas and managers via iPads in the store. Starbucks said that it hopes the AI will save employees time spent "flipping through manuals or searching for answers" that could be answered by a bot.

As explained in a video, Green Dot Assist can be used to look up drink recipes, find steps to troubleshoot malfunctioning equipment, or create a help ticket if in-store repairs fail. Starbucks noted that managers also can use the tool to fill scheduling gaps. The AI could review the store schedule, identify available staff, and send a message asking them to cover a shift, potentially avoiding the usual round of awkward texts to employees with other plans.

While Starbucks didn't answer our questions about Green Dot Assist, the biz told attendees at its Las Vegas event that the GenAI tool was built using OpenAI technology hosted on Microsoft Azure. A broader rollout is planned for fiscal 2026, which begins this fall, CNBC reported. A Starbucks spokesperson confirmed the report's accuracy.

As noted above, Starbucks has had a rough time lately, with reduced sales leading to disappointing earnings in its second quarter of the year that fell short of market expectations when reported in late April. Starbucks had hoped that reducing human barista headcount with order-taking machines would save some money, but it turns out customers weren't crazy about the approach.

Starbucks CEO Brian Niccol said earlier this month that the coffee giant's performance still "isn't yet where we want it to be," and that it is now in a rebuilding phase via its "Back to Starbucks" initiative, part of which includes making changes to improve the company. Part of that appears to involve Green Dot Assist.

"This marks a significant step forward in our commitment to streamlining operations, reducing friction, and giving partners more time to focus on crafting beverages and connecting with customers," Starbucks EVP and chief technology officer Deb Hall Lefevre said in a statement announcing the behind-the-counter AI.

Investors appear pleased with what they've heard. Starbucks stock popped on the news, rising nearly 5 percent since Green Dot Assist was announced yesterday. Whether employees will be happy to have their on-the-job training reinforced by an AI – and whether customers will be concerned that their barista can't make a drink without an AI's help – is another thing altogether. ®