Starbucks Ends AI Inventory Counting in North America

Starbucks has discontinued an artificial intelligence-powered inventory counting program across its North American stores after nine months of operation, citing a decision to standardize its inventory processes. The company announced the change internally this week, confirming that employees will return to manual counting methods for beverage components and milk.

The Automated Counting tool, launched in September 2025, was designed to streamline stock checks by using tablets equipped with cameras and LiDAR sensors. Employees would scan shelves to automatically tally items like syrups and milk, with the goal of improving speed and accuracy over manual counts. The program was a component of a broader operational turnaround strategy initiated by CEO Brian Niccol, who took over in late 2024, aimed at addressing persistent product shortages that have affected sales.

However, the system reportedly struggled with performance. According to internal assessments and earlier reports, the tool frequently miscounted or mislabeled items, such as confusing different types of milk, and sometimes missed products entirely. A promotional video released at the program's launch last year showed it...