- Starbucks withdraws its AI inventory tool after nine months due to real-world challenges
- AI failed to recognize or distinguish between stock items, forcing manual intervention
- Further technology and AI enhancements continue to be rolled out as part of the “Back to Starbucks” transformation
Starbucks has officially ended its much-publicized “automated counting” AI inventory program across all of its North American stores just nine months after its September 2025 launch.
Developed in collaboration with Seattle-based computer vision company NomadGo, the app was designed to use on-device 3D spatial intelligence, computer vision, augmented reality and LiDAR sensors to give stores real-time visibility into out-of-stocks.
CEO Brian Niccol had hoped the tool would free baristas from unproductive administrative work to offer more to customers, but reports indicate the technology ultimately failed to revolutionize store administration.
Failing Starbucks AI system removed just months after launch
“Our goal is simple: If it’s on the menu, customers should be able to order it,” Starbucks said (via Reuters), justifying the place of tech in its stores.
In early 2026, the global coffee chain announced its “Back to Starbucks” transformation plan, targeting revenue growth, more comparable store sales and more than 2,000 net new stores worldwide (including approximately 400 in the United States).
The problems arose when the technology was deployed and tested on a large scale, as stores found that the computer vision model struggled with basic spatial awareness and object recognition, frequently overcounting items, neglecting inventory, or mislabeling products.
Most notably, the tool was unable to differentiate between similar items, such as whole, oat, and almost milk cartons. Starbucks also inadvertently showed the app that a bottle of syrup was completely missing from a promotional video.
Ultimately, workers complained about having to force the AI to read the shelves by shaking and tilting the tablets in specific ways to trigger the sensors, making the task slower than manually entering details in the first place.
Starbucks has since removed associated blog posts praising the tool for its effectiveness, scoring a complete 180 from the initial positive stories.
“Thank you for stopping the automatic counting,” one worker wrote. “The idea behind it was great, but the execution proved difficult.”
The company has now returned to manual stock controls, but remains committed to a renewed model of high-frequency store replenishment to avoid customers being greeted with out-of-stock drinks.
Although Starbucks is in the spotlight for this particular example, the issues primarily revolve around computer vision and artificial intelligence outside the realm of text. In unpredictable, tightly packed retail warehouses with obscured labels, lighting variations and other variables, automated systems always face major challenges.
Starbucks is still committed to change
Although CEO Brian Niccol had already introduced this efficiency program to address chronic product shortages and long wait times, Starbucks reported a 9% increase in second-quarter quarterly revenue, to $9.5 billion, as well as a 7.1% increase in same-store sales in North America.
“We still have work to do, but we are pleased to see that the combination of our membership growth and cost discipline is starting to be reflected in margins,” added CFO Cathy Smith.
Another technological improvement that doesn’t seem to have gone away with the automation of inventory control is Starbucks’ new Smart Queue system, introduced in the company’s previous “Return to Starbucks” plan. It is designed to balance and prioritize incoming tickets across in-store, mobile, drive-thru and delivery orders to ensure customers are processed quickly.
Looking ahead, even though the inventory management tool failed, the company hasn’t removed mention of its AI plans, such as “leveraging artificial intelligence to support partners, including supply chain and planning tools.”
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