Starbucks has stopped using an AI-powered inventory tool after just nine months because it made the most basic of errors, according to a report from Reuters. The news comes after other AI tools have reportedly made serious mistakes, such as the case of a Pizza Hut franchisee who sued the pizza chain’s parent company after a system meant to make things more efficient allegedly cost $100 million in lost revenue. “Starting today, Automated Counting will be retired,” an internal Starbucks newsletter from this week read, according to Reuters. “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse.” The AI tool was reportedly an effort spearheaded by CEO Brian Niccol, who joined Starbucks from Chipotle in 2024, to address what he said were inventory shortages that were harming sales. Reached for comment, a Starbucks spokesperson told Gizmodo, “We test ideas in our coffeehouses, listen closely to partner feedback, and make changes to deliver a better, more consistent experience.”
When the tool, provided by NomadGo, was first rolled out in Sept. 2025, it was billed by Chief Technology Officer Deb Hall Lefevre as a solution for automating the inventory process and generally making it more efficient. But it sounds like the opposite happened.
