Starbucks has decided to discontinue its AI inventory program, “Automated Counting,” after just nine months of use due to operational failures. The program, launched in September 2025 for North American stores, aimed to automate inventory tracking and improve supply chain efficiency.

Developed in partnership with NomadGo, the software was designed to allow employees to scan items on shelves with mobile devices, intending to enhance accuracy in counting various items like milks and syrups. A blog post by CTO Deb Hall Lefevre promoted the tool’s capabilities, stating that it would help employees manage stock more effectively and improve the customer experience.

However, reports indicate the tool frequently mislabeled and miscounted inventory items, often confusing similar types of milk or failing to recognize them entirely. A video showcased in the now-deleted blog post illustrated these inaccuracies, with the system unable to detect a bottle of peppermint syrup during a shelf scan.

As a result, Starbucks employees will revert to manual inventory counting methods for beverages and supplies. An internal company newsletter confirmed this transition, with employees expressing relief over the decision. One worker noted, “Thanks for discontinuing Automatic Counting! The thought behind it was great, but the execution was proving difficult.”


Featured image credit