Starbucks Halts AI Inventory Project, Leaving Startup Surprised

WHO:

GeekWire - Starbucks, NomadGo, Carl Addison (Starbucks shift supervisor), Megan Queen (store manager in Graham, Texas), David Greschler (CEO of NomadGo)

WHAT:

GeekWire - Starbucks scrapped an AI inventory tool called "Automated Counting."

Fast Company - The Automated Counting tool was designed to reduce inventory counting time from an hour to 10-12 minutes.

Fast Company - The tool was deployed to all 11,300 company-operated cafés by the end of September.

Fast Company - The development and deployment of Automated Counting may have cost over $10 million.

Fast Company - After nine months, the tool was eliminated overnight.

Fast Company - Starbucks reported a 6.2% global sales growth at existing stores last quarter.

WHERE:

GeekWire - The project was developed in the Seattle area.

Fast Company - Issues with the tool were reported in various locations across the United States, including Texas and California.

WHEN:

Fast Company - The Automated Counting tool was introduced in September.

Fast Company - The tool was retired on May 18.

WHY:

Fast Company - Starbucks characterized the outcome as part of its test-and-learn culture, stating, “That is what innovation looks like at Starbucks: listening, learning, and adapting.”

Fast Company - The tool was intended to simplify a routine task and give partners more time with customers.

HOW:

Fast Company - Automated Counting used an iPad camera to identify and tally items on storage shelves using computer vision and augmented reality.

Fast Company - The app required a new-generation iPad Pro, which retailed for around $1,000.

(UPDATED July 27, 2026 18:29 UTC)

Starbucks has decided to scrap its AI inventory tool called "Automated Counting," which was designed to cut inventory counting time from an hour down to just 10 to 12 minutes. The tool, which was deployed to all 11,300 company-operated cafés by the end of September and reportedly cost over $10 million to develop, was eliminated after just nine months of use due to various issues reported across the United States. Starbucks described this outcome as part of its test-and-learn culture, emphasizing that innovation involves listening, learning, and adapting to improve customer experiences.