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Howard Schultz warns of the dangers of artificial intelligence for Starbucks
Howard Schultz raises concerns about AI and criticizes Starbucks in interviews as the company struggles with declining sales.
Howard Schultz warns of the dangers of artificial intelligence for Starbucks
Former Starbucks CEO Howard Schultz expresses extensive concerns about the rapidly growing role of artificial intelligence (AI) in an interview with LinkedIn. On October 15, 2025 in Cologne, Schultz pointed out that the development of AI shows similar patterns to that of social media. He warns that regulation is lagging behind and many questions remain unanswered. This could lead to negative consequences that outweigh the benefits. While Schultz supports the introduction of AI, as a private citizen he makes it clear that he has concerns about how it will be used. In this context, he calls on leading minds in the tech industry, such as Elon Musk and Bill Gates, to take responsibility and work together on solutions. Schultz reports that it is time to seriously address the impact of technological developments, especially considering the consequences of unregulated technologies.
Following his resignation, Schultz also turned his attention to Starbucks itself. He was critical of the company's declining business figures and made it clear that US operations are one of the main reasons for the current decline. In particular, he highlighted the need to prioritize customer experience in another LinkedIn post. He recommends that managers spend more time with employees in the cafes to improve quality and service. As for the offering, he criticized the new spicy drinks and called for "coffee-centric innovation" to differentiate Starbucks from the competition. For Starbucks, customer experience is everything - nothing should be left to chance.
Current challenges at Starbucks
The challenges facing Starbucks cannot be underestimated. New CEO Laxman Narasimhan reported a disappointing second quarter, with U.S. same-store sales falling 3%. That's a stark contrast to the 12% achieved last year. And there is no ray of hope in China either: sales there actually fell by 11%. Given these numbers, it's no wonder Starbucks shares are down more than 20% in 2023. Narasimhan is already planning to revitalize the business through app updates, improved service hours and new menu offerings.
Schultz, who remained one of the company's largest shareholders after stepping down in March 2023, admits he also faced financial disappointments during his tenure. For him, the solution is clear: “repentance and a new focus” are needed to change the company’s fortunes for the better. However, he remains optimistic and believes in a positive turnaround for Starbucks, despite the challenges that lie ahead for the company. However, the voices from the workforce and the ongoing negotiations with the Starbucks workers union do not seem to be the focus of his public discourse.
Overall, it shows that Schultz, despite his critical views, continues to believe in a positive future for Starbucks. The developments over the next few months will certainly be exciting. Starbucks has a choice: either invest in its own workforce, as Schultz suggests, or allow itself to be overwhelmed by the competition and new technologies. Wait and see how the situation develops.