The AI tool, which employees call “Automated Counting” internally, was designed to help store employees track milk, syrups and beverage ingredients using tablet cameras and LiDAR scanning technology. The system was developed to reduce product shortages and improve store operations.

But the program was officially shut down this week following operational problems cited by employees, according to an internal company newsletter reviewed by Reuters.

Workers said that the technology often miscounted products and mislabeled inventory items, such as mixing up similar varieties of milk or not recognizing products placed on shelves.

The internal newsletter said beverage ingredients would return to manual counting procedures. Starbucks indicated that the review of its inventory management process is part of an ongoing effort to standardize how inventory is managed across stores while improving supply chain consistency and product replenishment.

Automated Counting was originally deployed in September 2025 as part of Niccol’s broader turnaround strategy focused on automation and store efficiency.

The inventory system was developed by NomadGo, which said it would continue improving its AI products based on customer feedback.

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