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Starbucks Develops More AI Tools to Replace Software it Buys from Microsoft, IBM

Watch on YouTube ↗  |  July 10, 2026 at 11:59  |  2:52  |  Bloomberg Markets
Speakers
Daniela Sirtori — Bloomberg Restaurants Reporter
Paul Sweeney — Anchor, Bloomberg

Summary

Bloomberg's Daniela Sirtori discusses Starbucks' plan to develop AI-powered in-house software to replace tools from Microsoft and IBM, as part of its cost-cutting turnaround. The news pressures software stocks like IBM, ServiceNow, and Salesforce, highlighting broader concerns that AI will commoditize enterprise software.

  • Starbucks aims to cut software spending by building AI tools internally.
  • It is developing alternatives to a Microsoft inventory system and IBM maintenance tool.
  • Starbucks CTO sees opportunities to reduce software costs, targeting $10 million in savings this fiscal year.
  • The initiative is part of a broader turnaround and cost review at the coffee chain.
  • IBM, ServiceNow, and Salesforce shares fell on the news.
  • The move fuels market fears that AI will enable companies to replace vendor software with cheaper in-house solutions.
Ideas
Daniela Sirtori Bloomberg Restaurants Reporter 1:08
Starbucks case threatens IBM, Microsoft software.
Starbucks' move exemplifies a broader threat where AI enables customers to build custom software that can replace vendor products from companies like IBM and Microsoft, potentially reducing demand for legacy enterprise software.
IBM MSFT MED
Paul Sweeney Anchor, Bloomberg 1:33
AI disruption threatens ServiceNow, Salesforce.
The market sell-off in ServiceNow and Salesforce reflects concern that AI can be used to create cheaper alternatives to software-as-a-service offerings, posing a risk to their revenue.
NOW CRM MED
Daniela Sirtori Bloomberg Restaurants Reporter 2:00
Starbucks AI in-house tools cut software costs.
Starbucks is using AI to develop in-house software replacements for tools it currently buys from Microsoft and IBM, part of a cost-cutting effort. The CTO sees opportunities to reduce software spending, targeting $10 million in savings this fiscal year, which supports the company's broader turnaround and margin improvement.
SBUX MED
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This Bloomberg Markets video, published July 10, 2026, features Daniela Sirtori, Paul Sweeney discussing IBM, MSFT, NOW, CRM, SBUX. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Daniela Sirtori, Paul Sweeney  · Tickers: IBM, MSFT, NOW, CRM, SBUX