Starbucks officially retired its AI-driven inventory counting tool called "Automated Counting" in June 2026, ending its nine-month deployment across North American stores launched in September 2025 [1, 2]. The system aimed to automate the tracking of beverage components such as milks and syrups to improve inventory accuracy and speed [1, 2].
The AI tool was developed in partnership with NomadGo and designed to allow staff to scan inventory quickly with handheld tablets, letting partners view stock levels instantly to better manage items like cold foam, oat milk, and caramel drizzle[ s2]. Starbucks Chief Technology Officer Deb Hall Lefevre described the tool's purpose as freeing store employees to spend more time with customers rather than counting stock[ s2].
However, the AI frequently miscounted and mislabeled similar milk types and overlooked products including peppermint syrup, leading to inventory inaccuracies that undercut its effectiveness [1, 2]. Starbucks CEO Brian Niccol saw the tool as part of broader efforts to address product shortages that were hurting sales [1, 2].
An internal company newsletter informed staff of the switch back to manual counting, noting, "Starting today, Automated Counting will be retired. Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse"[ s1]. Employees welcomed the change, with one commenting, "Thanks for discontinuing Automatic Counting! The thought behind it was great, but the execution was proving difficult"[ s1].
Starbucks said the decision to stop using the AI system was intended "to standardize inventory counting across stores and focus on consistent execution at scale"[ s1]. The company plans to implement more frequent daily replenishments and other supply chain improvements now that the AI tool is retired[ s1].
