Starbucks has decided to pull the plug on an AI-powered inventory tool across its North American stores after just nine months, according to Reuters.
What's happening?
The system, called "Automated Counting," was supposed to help stores keep milk, syrups, and other drink ingredients in stock. Instead, it reportedly created frustration by miscounting products and confusing similar items.
Starbucks introduced the tool in September as part of a broader effort to reduce product shortages. It was one of CEO Brian Niccol's priorities as he worked to improve the coffee chain's operations.
The app used tablet cameras and LiDAR to scan shelves and automatically count beverage ingredients, replacing some manual inventory checks. But as Reuters previously reported, the system frequently got things wrong, including mixing up milk varieties or missing items.
"Starting today, Automated Counting will be retired," an internal Starbucks newsletter said, according to Reuters. "Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse."
Reuters noted that in a video Starbucks had previously posted about the tool, the app appeared to miss a peppermint syrup bottle while counting nearby products.
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Why does the inventory tool's removal matter?
Product shortages can lead to substitutions, delays, and frustration at the register or in the drive-thru. A flawed system can create extra labor instead of reducing it, especially if baristas still have to double-check inventory by hand.
At its best, AI can help businesses run more efficiently, optimizing delivery routes, reducing waste, and improving forecasting.
However, AI has tradeoffs, including high electricity and water use as well as security and misuse concerns. Overhyped tools may even waste time, money, and resources when they do not work as promised. In some cases, those costs can trickle down to businesses and households alike. AI can also cost humans jobs.
As such, the tech's failure prompted celebration by some on X, including from NZ (@CodeByNZ).
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First major defeat to Ai in job sector. https://t.co/IDBX01YbRF pic.twitter.com/62bOuWK4WI
— NZ ☄️ (@CodeByNZ) May 21, 2026
How are other people feeling about the tool's removal?
"Our goal is simple — if it's on the menu, customers should be able to order it," Starbucks said in a statement to Reuters.
Some employees appeared relieved. In screenshots shared by the company, one worker wrote: "Thanks for discontinuing Automatic Counting! The thought behind it was great, but the execution was proving difficult."
NomadGo, the app's provider, told Reuters it is "continuously learning from customer and user feedback" to improve its products.
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