Trending Now - Starbucks Scraps Costly AI Tool After Nine Months of Failure

WHO:

Engadget - Starbucks is the organization involved in the decision to retire the AI inventory system.

WHAT:

Fast Company - Starbucks is retiring its Automated Counting tool, stating, “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.”

Fast Company - Starbucks is still investing in internal AI applications, including an AI assistant for baristas called Green Dot Assist and an AI-powered order-sequencing system called Smart Queue.

Engadget - Starbucks is abandoning its AI inventory tool after only nine months of use.

Reddit Conspiracy - The AI system reportedly miscounted and mislabeled store inventory.

Reddit Conspiracy - The AI inventory system cost over $50 million to develop.

WHERE:

Engadget - The AI inventory system was used across North America.

WHY:

Fast Company - A spokesperson for Starbucks explained that the decision to retire the Automated Counting tool is part of a larger AI strategy based on trial and error, emphasizing the importance of partner feedback.

Reddit Conspiracy - The AI tool failed to accurately differentiate between items, such as a chai and a syrup bottle.

HOW:

Fast Company - Starbucks is experimenting with an integrated Starbucks app within ChatGPT.

Reddit Conspiracy - The system was designed to utilize LiDAR cameras and tablets for data collection over eight months.

(UPDATED May 22, 2026 21:30 UTC)

Starbucks has announced the retirement of its Automated Counting tool, stating that beverage components and milk will now be counted like other inventory categories in their coffeehouses. Despite this change, the company continues to invest in AI applications, including an AI assistant for baristas called Green Dot Assist and an AI-powered order-sequencing system known as Smart Queue. Additionally, Starbucks is experimenting with an integrated app within ChatGPT as part of its ongoing AI strategy, which emphasizes partner feedback and learning through trial and error.

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(UPDATED May 22, 2026 19:31 UTC)

Starbucks has decided to retire its AI inventory system after just nine months of use, following reports of significant inaccuracies in item counting and labeling. The tool, which was developed at a cost of over $50 million and utilized LiDAR cameras and tablets for data collection, struggled to differentiate between products like chai and syrup bottles across North America. This decision comes as the company seeks to address the challenges posed by the miscounting issues that plagued the system.