Starbucks is developing artificial intelligence tools internally to replace existing software. These new applications could replace systems currently bought from Microsoft and IBM. The coffee chain aims to reduce significant annual spending on software licenses. Some of these AI-powered tools may be implemented by the end of next year. This strategic shift reflects a broader industry trend driven by AI advancements.

“There’s clear opportunities to reduce the spend in software,” said Starbucks Chief Technology Officer Anand Varadarajan.

International Business Machines shares are trading lower after reports that Starbucks is developing tools to reduce reliance on IBM software.