Starbucks Abandons Big Tech Vendors for Custom AI Tools

Starbucks is taking a significant step in its technology strategy by building AI-powered software tools to replace systems it currently licenses from Microsoft and IBM. According to an internal presentation reviewed by Bloomberg News, the coffee chain aims to develop its own AI-assisted coding capabilities to lower the barrier to custom software development.

The company is targeting Microsoft Dynamics 365 for inventory tracking and IBM's TRIRIGA platform for maintenance management. Some of these internally developed replacements could go live as early as the end of 2027, pending successful testing.

IBM shares declined in early trading following the report on July 9, 2026, while Microsoft saw a slight dip. Starbucks' own stock remained relatively stable.

This move is not surprising given Starbucks' previous foray into emerging technology with its Odyssey loyalty program built on the Polygon blockchain in 2022. However, that experiment was discontinued in March 2024.