Starbucks is set to introduce a new AI assistant, powered by Microsoft Azure’s OpenAI platform, to 35 locations this month. The initiative, dubbed "Green Dot Assist," aims to streamline tasks and expedite service in its cafes. More than 14,000 North American store managers got a preview of this cutting-edge technology during the company’s Leadership Experience in Las Vegas on Tuesday. A full-scale rollout across the U.S. and Canada is planned for fiscal 2026, which begins in the fall. The move aligns with Starbucks' broader strategy to rejuvenate its lagging U.S. sales and restore its reputation, as outlined by CEO Brian Niccol. One of Niccol’s key goals since taking the helm last year is to reduce service times to four minutes per order. The AI assistant is expected to play a crucial role in achieving this target by providing baristas with quick and accurate information. Deb Hall Lefevre, Starbucks’ Chief Technology Officer, explained the benefits of Green Dot Assist to CNBC. “This is another example of how innovation and technology are serving our partners, ensuring we’re doing everything possible to simplify operations, make their jobs easier, and perhaps even more enjoyable,” she said. Instead of manually searching through manuals or accessing Starbucks’ intranet, baristas can now use a tablet equipped with the AI assistant to get instant answers to various questions, whether about preparing specific drinks or resolving equipment issues. They can interact with Green Dot Assist using either typed or spoken commands in natural language. Starbucks envisions a more advanced version of the AI assistant in the future, which could automatically generate IT tickets for equipment problems or suggest replacements when a barista is absent. Lefevre noted that these enhancements would further support the company’s operational efficiency and partner well-being. The collaboration with Microsoft marks a significant step in Starbucks' technological journey, especially considering that the partnership has continued even after Microsoft CEO Satya Nadella stepped down from Starbucks' board of directors last year. With the launch of ChatGPT in late 2022, numerous companies have explored the integration of generative AI to optimize their operations and potentially boost stock prices. Retail giants like Walmart and JPMorgan Chase have already implemented similar AI solutions for their employees. However, AI chatbots are not infallible. They can occasionally provide inaccurate information, referred to as "hallucinations," which might complicate rather than resolve issues. To mitigate this risk, Starbucks and Microsoft have incorporated a grounding engine that ensures the accuracy and reliability of the responses given by Green Dot Assist. The restaurant industry is increasingly turning to AI to enhance worker productivity and operational efficiency. Yum Brands, for instance, has partnered with Nvidia to deploy AI for order-taking, computer vision, and performance assessments. Despite these advancements, not all AI initiatives have met expectations. McDonald’s, for example, terminated its partnership with IBM following a failed trial of AI-driven drive-thru order-taking. In addition to Green Dot Assist, Starbucks showcased several other new technologies at the Leadership Experience. These include the latest generation of its Mastrena espresso machines and a more user-friendly point-of-sale (POS) system. According to Lefevre, experienced baristas can master the new POS system within an hour. This system also offers personalized recommendations and remembers regular customers’ favorite orders, supporting Starbucks’ efforts to bring a personalized touch back to its cafes and improve customer loyalty. Overall, these innovations reflect Starbucks’ commitment to leveraging technology to enhance both partner experiences and customer satisfaction. As the company continues to refine and expand these tools, it aims to create a more efficient and enjoyable environment for everyone involved.