Starbucks abandons its AI inventory tool after only nine months
Source: Engadget
Starbucks / YouTube
Background
AI can be a powerful tool—helping fine‑tune weather forecasts or improve accessibility for people with disabilities. In this case, however, the technology fell short, leading Starbucks CEO Brian Niccol to announce the discontinuation of an AI‑driven inventory system after just nine months.
Rollout and Hype
- Launch: September 2025
- Partner: NomadGo
- Tool name: “Automated Counting”
- Purpose: Speed up inventory tracking by letting employees scan shelf items with mobile devices, aiming to increase accuracy and optimize the supply chain.
A now‑deleted September blog post by CTO Deb Hall Lefevre (archived here) promoted the system:
“With a quick scan using a handheld tablet, partners can instantly see what’s in stock — ensuring cold foam, oat milk, or caramel drizzle are always available. Customers can enjoy beverages their way, every time — and partners spend less time in the backroom and more time crafting and connecting.”
(Starbucks refers to its employees as “partners.”)
Problems and Cancellation
According to Reuters, the AI tool frequently mislabelled and miscounted items, often confusing similar milk types or omitting them entirely. A video embedded in the original blog post even showed the system missing a bottle of peppermint syrup during a scan.
As a result, Starbucks will revert to manual counting:
“Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse,” an internal company newsletter cited by Reuters stated.
Employee reactions were mixed, with one remark noting, “The thought behind it was great, but the execution was proving difficult.”