We can build this ourselves, Starbucks builds AI tools to replace vendor software

IBM, ServiceNow, and Salesforce shares are down in premarket trading on Thursday after a report that Starbucks is developing in-house software using artificial intelligence that could replace applications it currently buys from outside vendors.

IBM shares have dropped 3%, ServiceNow has fallen 3.5% and Salesforce has declined 4% ahead of the open.

The coffee chain is said to be building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, and some of the Starbucks-developed software could roll out by the end of next year, pending testing results, Bloomberg reported, citing an internal presentation.

Starbucks spends about $400 million a year on software, and Chief Technology Officer Anand Varadarajan told workers earlier this year there are “clear opportunities to reduce the spend in software,” according to a recording of an internal meeting reviewed by Bloomberg.