Starbucks Scraps Disastrous AI Tool

Starbucks retired an AI tool called Automated Counting that had been deployed across North American stores to automate inventory management. The tool aimed to provide accurate real-time information to help address ingredient shortages. Reporting indicated the AI often miscounted and mislabeled items, including confusing different types of milk and sometimes failing to count milk at all. An internal newsletter stated that beverage components and milk would be counted the same way as other inventory categories. The tool was built by NomadGo and was intended to let employees count inventory quickly using a smartphone or tablet. Starbucks previously claimed the AI improved product availability, but later said the change was part of standardizing inventory counting for consistency and execution at scale.

"“Starting today, Automated Counting will be retired,” read an internal company newsletter from Monday obtained by the news agency. “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse.” Having lasted just nine months, the AI experiment stuck around longer than some of the coffee chain's seasonal drink offerings, but didn't approach anywhere near the level of permanent revolutionary impact the tech promises."

"The tool, which was deployed across its North American stores, was designed to automate inventory management with the goal of providing accurate real-time information that could help Starbucks address ingredient shortages at its locations. But according to previous Reuters reporting, the error-prone AI frequently miscounted and mislabeled items, confusing different types of milk and sometimes forgetting to count them altogether."

"It was only in February that it told Reuters that the AI already helped improve product availability. On Thursday, it only explained that the AI program's termination was part of a decision to “standardize how inventory is counted across coffeehouses as we continue to focus on consistency and execution at scale.” The tool, built by NomadGo, was intended to allow employees to “count everything in your inventory... with just a wave of a smartphone or tablet,” its website claims."

"In practice, employees held up a company tablet in front of shelves sto"

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