Starbucks Corp SBUX has launched a new AI tool to help baristas prepare drinks.
What Happened: Green Dot Assist, the Seattle-based coffee chain announced, is an AI tool developed with Microsoft Azure’s OpenAI, Business Insider reports. It will serve as a virtual assistant for baristas, available on the iPad behind the counter. Instead of digging through manuals, baristas can now ask their new companion and receive instant, conversational responses, said Starbucks said in a press release.
In an explanatory video, Starbucks showcased the variety of ways in which the tool can help baristas with customizing recipes, recommending food pairings, troubleshooting equipment issues and so on. Currently undergoing tests, Green Dot Assist is available in 35 coffeehouses in the U.S., with more on the way.
Why It Matters: Starbucks is currently enduring a troubling period, and CEO Brian Niccol has expressed his determination to transform the coffee chain through his “Back to Starbucks” strategy.
Despite the slowdown, rising recession risks and global trade uncertainty, Niccol believes that Starbucks is a "simple, everyday luxury" that consumers will continue to enjoy regardless of the economic challenges surrounding them.
Starbucks Corp reported worse-than-expected results for the second-quarter FY25. The company underperformed for five consecutive quarters and its recent Q2 result was below expectations for both revenue and profit.
To improve profitability, Brian Niccol is eliminating one of the company's most generous loyalty programs, including benefits like the 25-star bonus for personal reusable cups. Analysts remain skeptical about Starbucks’ resilience amid mounting competition in China from rivals like Luckin Coffee, ongoing tariff uncertainty and whether or not company will balance its premium image.
Image via Shutterstock
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