Artly's AI Powered Barista Robots

The immensely gargantuan industry that is coffee has a market size of about $27B in the US alone in 2023 and is predicted to reach over $32B by 2028, according to Mordor Intelligence.

Though the industry in itself is already largely successful without the need for any external force boosters, the vast growth and rise of AI have inspired companies to integrate AI into their business models.

This includes Artly Coffee, a Seattle-based robotic coffee company co-founded by Meng Wang, Wenbo Yang, and Yushan Chen, utilizing AI and robotics for business efficiency and speedy scaling.

AI and Coffee

Most companies in the coffee industry utilize AI tools with a similar goal, which is to increase day-to-day efficiency. This can be done by having AI-powered automation and data management, which has also often been seen in several industries like retail, architecture, and healthcare.

Tools like Chooch, for example, have been used by companies in the coffee industry to track customer wait times, employee productivity, and data metrics like the number of cups employees need to serve a certain number of customers to optimize forecast demand to simplify inventory management. Several companies have also used AI to take customer orders and make payments as they aim to reduce labor costs.

Artly, on the other hand, does things a little differently. The company incorporates visionary Barista Bots it has developed using AI and deep learning technology into its business model. Every one of the company’s coffee shop chains includes a robotic barista at work during its day-to-day services.

Deep Learning and Quality Beans

Using deep learning and computer vision algorithms, the company managed to create Barista Bots that know how to use human tools and perform actions. The company claims that these bots are able to create the perfect cup of coffee every time, ensuring this using a deep learning-based visual inspection used to monitor drink quality every step of the way for every order.

The bots are trained to detect anomalies, avoid obstacles, and understand physical reasoning aimed to help them recognize each chain’s structure and plan paths they need to take.

While we can imagine maintaining a coffee business already comes with its own tricky obstacles, the challenge hasn’t stopped Artly from focusing its resources on robotic development as well.

Artly’s business model is divided into two different segments. One is Artly Coffee, the chain of coffee shops that are mostly company-operated, with some under partnership with clothing retailer MUJI. Artly sources and roasts its own coffee beans, ensuring this model’s success through high-quality coffee products.

The other is Artly AI, which has the company running a “robot-as-a-service” model of sorts by renting out the same kind of barista bots they use in their coffee shops to other companies for revenue and profit.

Artly’s RaaS model includes an imitation learning platform that human baristas can use to teach the bots new tricks through examples. The company ensures that the bots can learn to operate different tools quickly and finish every task no matter the environment.

Humans and Robots

Though Artly has Barista Bots operating in every one of its chains, CEO Meng Wang ensures that the company will continue to acknowledge the significance of human involvement.

Instead of having robotics completely displace what used to be the roles humans play, Artly redirects human baristas to more high-level and STEM-related jobs. Artly baristas are assigned to create better, innovative recipes and train the robots with the company’s computer vision technology to ensure that the bots can do their best work every day. Artly baristas are also still in charge of customer service.

Artly recently raised $8.3M in its pre-Series A funding round to further grow its robotic barista concept across the US and open up more coffee shop chains. There are currently a total of eight Artly coffee shops (two under the partnership with MUJI) across California, New York, Washington, and Oregon, with two more opening soon.

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