By Blessing Nweke

Americans pulling into a Starbucks drive-thru may believe they are chatting with a cheerful barista, but at some locations the voice taking their order is actually powered by artificial intelligence. Inside stores, human staff are increasingly supported by virtual assistants that can instantly recall drink recipes, help manage schedules and answer operational questions.

Behind the scenes, new scanning technology is also being used to automatically count inventory, removing one of retail’s most time-consuming tasks and helping the coffee chain fix persistent out-of-stock gaps that have frustrated customers. The digital upgrades are part of hundreds of millions of dollars Starbucks has invested as it works to regain momentum after years of sluggish sales.

There are early signs the strategy is paying off. Last week, the 55-year-old company reported its first sales increase in two years at established US stores, which account for roughly 70% of total revenue. However, investor confidence remains shaky, with Starbucks shares falling 5% amid concerns that heavy spending, including $500m to boost staffing, has weighed on profits.

Chief executive Brian Niccol, who joined in 2024 during a turbulent period for the brand, says sustained sales growth will eventually ease those worries. With Starbucks also pledging to find $2bn in cost savings over the next three years, technology investments are seen as crucial to ensuring higher sales translate into stronger margins.

Niccol has halted price increases, simplified the menu and pushed for faster service, while also cutting corporate roles and closing underperforming stores. Despite deploying AI, he insists the focus remains on restoring Starbucks’ identity as a welcoming community coffeehouse.

“The business is a coffee shop-by-coffee shop business,” Niccol said, arguing that technology should reduce friction, not replace human connection, as Starbucks bets innovation can help brew a lasting turnaround.