Starbucks has been experimenting with artificial intelligence as it seeks to turn around its business and gain an advantage in the competitive industry. But even as the coffee giant pushes forward with automation, its CEO, Brian Niccol, insists that it's designed as a support tool rather than a substitute for workers.
"It’s more of a co-pilot than a replacement," Niccol told FOX Business during a September interview where he explained how human connection is a key in the brand's turnaround efforts.
Niccol said the company recently invested upward of $600 million toward putting more workers, whom the company refers to as "partners," back in its stores. The goal, he said, is "to provide that human connection."
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"I think one of the things that people definitely highly, highly value is the humanity of Starbucks. And that's never going away. We've got to have craft," he said. "We've gotta have connection. And we've got to have a community coffee house."
Still, Starbucks is heavily leaning into the technology, recognizing that it can significantly take the strain off workers and boost productivity. It’s now considered critical to effectively compete in today's environment as companies across the retail, food service and operations-heavy industries have aggressively adopted AI to eliminate repetitive tasks, reduce human error and lower operational costs.
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In June, the company announced its Green Dot Assist, a virtual assistant built to help baristas manage workflows through an iPad system. For example, if a barista needs a quick reminder of the ingredients for a seasonal beverage, Green Dot Assist provides guidance.
The company also rolled out a new tool that uses an iPad to automatically scan inventory in the back room, removing the need for employees to manually count items.
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"I think there's going to be a lot more breakthroughs on how we can use AI in our business. And it's something that we're going to experiment with, we're going to learn, and I think it'll continue to be a part of the business," Niccol said.
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While he doesn't know exactly how it will ultimately roll out, Niccol said it "definitely feels like there's a big breakthrough that we'll continue to work our way towards."
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