Exclusive | Starbucks CEO Laxman Narasimhan on navigating the future with AI integration and strategic tech partnerships

Global coffeehouse giant Starbucks is not just a space for customers to unwind but also a blend of both coffee and technology, according to Starbucks Global CEO Laxman Narasimhan. In an interview with CNBC-TV18, Narasimhan emphasised how technology serves as a significant facilitator for the company, impacting everything from sustainable farming practices to creating a seamless customer experience.

Narasimhan shared insights into the pivotal role technology plays in Starbucks' operations, from enhancing crop productivity sustainably to optimising the supply chain and ensuring products reach their destinations efficiently. With a global workforce ranging from 40,000 to 60,000, Narasimhan acknowledged occasional human errors and outlined Starbucks' commitment to leveraging technology to drive productivity and streamline the supply chain.

He also addressed how Starbucks is reallocating resources from non-value-added areas to technology-driven initiatives that enhance value creation. He emphasized the potential savings achieved by optimizing operations and redirecting funds toward innovation.

Narasimhan revealed Starbucks' focus on incorporating artificial intelligence (AI) into its operations, showcasing the Deep Brew AI platform introduced in 2019 - a broad suite of AI tools to help elevate every aspect of the business and the in-store and customer experience. As Generative AI is set to enhance this platform, Starbucks anticipates further advancements.

“AI can help do the heavy lifting on processes like inventory, supply chain logistics and replenishment orders, saving partners time and making sure nobody runs out of Nitro Cold Brew or Banana Nut Bread. AI can help managers predict staffing needs and make schedules. AI can help anticipate equipment maintenance well before an oven or a blender goes on the fritz,” the post added.

Apart from artificial intelligence, Narsimhan also highlighted how strategic partnerships with tech giants Microsoft, Apple, and Amazon, contribute to Starbucks' technological evolution. The partnerships involve leveraging Microsoft's expertise, integrating Apple products into Starbucks operations, and utilising Amazon's payment systems in the United States.