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Starbucks Scraps AI Inventory System After 9 Months
22 May
Summary
- AI inventory system for milk and syrups launched in Sept 2025.
- System frequently miscounted or mislabeled beverage components.
- Employees are returning to manual inventory counting methods.
Starbucks has discontinued its AI-driven inventory management system, known as 'Automated Counting,' less than a year after its implementation. This AI tool was introduced in September 2025 to North American locations with the goal of automating the tedious task of counting beverage components such as milks and syrups.
The system, developed in collaboration with NomadGo, aimed to increase accuracy and optimize the supply chain by enabling employees to scan items using mobile devices. However, reports indicate that the AI frequently struggled, misidentifying or failing to count similar items correctly, including specific syrups.
Following these operational difficulties, Starbucks partners will now return to traditional manual inventory counting methods for all beverage components and milk. This shift marks a return to pre-AI processes, as the company acknowledges the execution challenges associated with the automated system.
