AI in Focus: Starbucks

A decidedly non tech coffee merchant like Starbucks probably isn’t the first name you think of when it comes to widespread adoption of Artificial Intelligence. But with 31,000 stores worldwide and 400,000 partners serving 100 million customers a week, the scale and complexity are a challenge for CEO Kevin Johnson. Johnson has over three decades of experience in tech with companies like IBM, Microsoft, and Juniper Networks. It’s no surprise he’s leveraging AI capabilities for a sustained competitive advantage.

Starbucks has embraced AI as far back as 2017 with what ultimately became Deep Brew. The Deep Brew project uses artificial intelligence to drive personalization engines, as well as optimize inventory and store labor. Deep Brew powers the Starbucks Rewards loyalty program by providing insight into customer preferences through the mobile app. According to CEO Johnson, Deep Brew solutions will sequence orders, anticipate equipment maintenance, and streamline supply chain logistics. The company continues to fine-tune their AI initiative to allow partners to spend more time connecting with customers.

Starbucks is evolving to address consumer behavior through multiple avenues. They have embraced mobile ordering & payment, social media, and are scaling their network through their brand loyalty program. CEO Kevin Johnson understands big data and the power of adopting artificial…