Starbucks is embracing the trend toward agentic artificial
intelligence with a new innovation designed to enhance the customer experience. On Wednesday, the coffee company based in Seattle unveiled a beta application within ChatGPT that uses OpenAI’s conversational AI to assist customers in finding beverages that match their preferences and mood.
To use the new feature, customers need to activate it through ChatGPT’s app directory. Users can begin their interaction by typing “@starbucks” in their conversation prompt, which allows them to personalize their beverage selections and select a nearby store location. Although the ordering process begins within ChatGPT, customers must complete their purchases through either the official Starbucks mobile application or the company’s website.
The AI-powered tool goes beyond traditional menu browsing. It can even analyze a photograph of a customer’s clothing and suggest beverages based on their outfit. According to Paul Riedel, who serves as senior vice president of digital and loyalty at Starbucks, the company has observed a shift in customer behavior over the past year. In a statement provided to CNBC, Riedel explained that consumers are increasingly beginning their ordering journey with an emotion or mood rather than a specific menu item. The company designed this new tool to capitalize on these moments of inspiration and simplify the process of finding the perfect beverage.
Starbucks joins a growing list of major corporations partnering with OpenAI to connect with consumers through ChatGPT. Companies such as Expedia, Zillow, Target, and Walmart have also established similar collaborations.
The coffee chain is currently undergoing significant operational changes under the leadership of CEO Brian Niccol, who assumed his position in September 2024. Niccol, who previously spearheaded a successful digital transformation at Chipotle, is implementing a strategy at Starbucks that combines traditional customer service excellence with cutting-edge technology solutions.
Among these technological initiatives is Green Dot Assist, an AI-driven tool developed using Microsoft’s Azure OpenAI platform. This system helps baristas access drink recipes, resolve equipment problems, and optimize staff positioning during busy periods. After a pilot program involving just 35 stores last June, the technology was rolled out to all North American locations by November.
The company’s transformation efforts appear to be yielding positive results. Starbucks announced in January that it had achieved its first increase in comparable U.S. transactions in two years. The company is experiencing higher visit frequency from both loyalty program members and occasional customers. Additionally, service times during peak hours are now consistently below the company’s four-minute goal, despite the increase in customer traffic.
In March, Starbucks revealed plans to establish a corporate office in Nashville, Tennessee, as part of its growth strategy across North America and to create a stronger presence in the southeastern United States. This expansion will result in some changes to Seattle-based positions associated with the company’s North American supply-chain functions.
The introduction of AI-powered beverage discovery represents Starbucks’ continued commitment to meeting evolving customer expectations. By allowing customers to interact with the brand through ChatGPT, the company is positioning itself at the intersection of traditional retail and emerging AI technology. This approach reflects broader industry trends as retailers explore innovative ways to engage with digital-savvy consumers who increasingly expect personalized, technology-driven shopping experiences.
The beta application demonstrates how established brands are adapting to a landscape where artificial intelligence plays an increasingly central role in customer interactions and purchasing decisions.