Starbucks retired an AI-powered inventory-counting tool after it produced inaccurate counts and mislabeled products. Employees were told that beverage components and milk would be counted using the same method as other inventory categories. Starbucks said the decision fits an AI strategy based on testing ideas in coffeehouses, listening to partner feedback, and making changes to improve consistency. The company continues investing in internal AI applications, including an AI assistant for baristas, an AI order-sequencing system, and experiments integrating the Starbucks app with ChatGPT. Pizza Hut faced negative fallout tied to an AI delivery tool, with a franchisee filing a lawsuit after the system’s impact.
"“Starting today, Automated Counting will be retired,” read an internal company newsletter verified by Reuters. “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse.” In a statement to Fast Company, a spokesperson for Starbucks explained that the company's choice to axe its Automated Counting tool is in line with its larger AI strategy, which is based in trial and error."
"“We test ideas in our coffeehouses, listen closely to partner feedback, and make changes to deliver a better, more consistent experience,” they said. Starbucks' move to ditch one AI tool doesn't mean the company is foregoing the technology entirely. The company is still investing in internal AI applications, including an AI assistant for baristas called Green Dot Assist and an AI-powered order-sequencing system called Smart Queue."
"Where Starbucks' choice to nix its AI tool came from the top down, the anti-AI sentiment at Pizza Hut started with a disgruntled franchisee. In a lawsuit filed on May 6, franchisee Chaac Pizza Northeast, which operates more than 100 Pizza Hut"
#ai-in-retail #food-service-operations #inventory-management #legal-disputes #customer-delivery-systems
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