Can artificial intelligence (AI) determine that you want to order a dark roast coffee with a splash of almond milk and one packet of sugar? It could be heading that directions as coffeehouse chain Starbucks is looking to utilize AI to open up additional avenues to sales.
Per a Motley Fool report, Starbucks is partnering with Microsoft to use data to enhance the customer service experience.
“As an engineering and technology organization, one of the areas we are incredibly excited to be pursuing is using data to continuously improve the experience for our customers and partners,” said Starbucks chief technology officer Gerri Martin-Flickinger.
When a customer uses the Starbucks mobile app, it uses previous orders as data to determine their beverage preferences based on local stores and even offer recommendations. Additionally, the coffeehouse chain is looking to use this same technology for their drive-thru service, allowing customers to view recommendations on a digital menu.
“We’re meeting our customers where they are … using machine learning and artificial intelligence to understand and anticipate their personal preferences,” said senior vice president Jon Francis. “Machine learning also plays a role in how we think about store design, engage with our partners, optimize inventory and create barista schedules. This capability will eventually touch all facets of how we run our business.”
An AI ETF to Consider
AI is seemingly limitless as more businesses look to integrate the technology to enhance their core operations. As such, investors can look at funds like the ARK Innovation ETF (NYSEArca: ARKK).
ARKK seeks long-term growth of capital and is an actively-managed ETF that invests in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation. Its investments in foreign equity securities will be in both developed and emerging markets.
Another ETF to consider is the AI-Powered International Equity ETF (NYSEArca: AIIQ). Under the hood, the fund runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.
AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.
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