Starbucks has halted its use of an AI program designed to automate inventory counting due to operational issues. This was reported by Reuters citing sources.
The application was rolled out nine months ago across all North American stores. The tool was part of CEO Brian Niccol's efforts to address the ongoing issue of product shortages within the coffee chain, which he believed was impacting sales.
The program aimed at improving inventory management miscounted and misidentified products. For instance, it could confuse similar types of milk or completely overlook them.
“As of today, the automated inventory system will be decommissioned. Milk and beverage components will now be counted just like other product categories in the café,” stated an internal memo reviewed by Reuters.
In February, the company reported improved product availability in stores thanks to the AI application.
In a new comment to the agency, the company stated that the discontinuation of the service is part of a decision to “standardize inventory counting across all cafés.”
Reuters noted that employees were pleased with the decision to abandon automated inventory. The idea “was great, but proved difficult to implement in practice.”
It’s worth mentioning that in June 2024, McDonald’s also abandoned IBM’s AI technology for automated order taking due to customer complaints.