Starbucks CEO says AI is not a replacement for employees, but a 'co-pilot'

Starbucks is experimenting with artificial intelligence in a bid to rebuild its business and gain an edge in a competitive industry. But even as the coffee giant ramps up automation, CEO Brian Nicol insists automation is designed as a support tool, not a replacement for workers.

“I'm more like a co-pilot than a successor,” Nicol told Fox Business in a September interview, explaining how relationships will be key in the brand's rebuilding efforts.

Nicol said the company recently invested more than $600 million to bring more employees, whom the company calls “partners,” back to its stores. The goal is to “provide a human connection,” he said.

Starbucks CEO says coffee chain is 'ahead of schedule' with major turnaround effort after a year

“I think one of the things that people definitely appreciate very much is the humanity of Starbucks. And that's never going to go away. We have to have a craft,” he said. “We have to connect, and we have to have community coffeehouses.”

Still, Starbucks is leaning heavily into technology, recognizing that it can significantly reduce the burden on employees and improve productivity. Competing effectively in today's environment is considered critical as companies in retail, food service, and operations-focused industries aggressively deploy AI to eliminate repetitive tasks, reduce human error, and reduce operational costs.

Starbucks CEO doubles parental leave amid restructuring

In June, the company announced Green Dot Assist, a virtual assistant built to help baristas manage their workflow through an iPad system. For example, if your barista needs a quick reminder of the ingredients in a seasonal drink, Green Dot Assist can provide guidance.

The company also introduced a new tool that uses iPads to automatically scan backroom inventory, eliminating the need for employees to manually count items.

Starbucks rolls out changes including free refills. Restore the condiment bar

“I think there are going to be a lot more breakthroughs in how businesses can leverage AI. And I think that's something we're going to experiment with and learn from, and I think it's going to continue to be a part of business going forward,” Nicol said.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Nicol said he doesn't know exactly how it will ultimately play out, but “there's definitely been great progress and we're going to continue working towards that.”