Skip to main content
  1. Home
  2. Emerging Tech
  3. News

Starbucks kills AI manager tool because it wasn’t doing as good a job as a human

The system reportedly struggled with miscounts, mislabeled products, and store-level execution issues.

Add as a preferred source on Google
Starbucks Coffee Cups FEatured
kevs / Unsplash

For the last two years, tech companies have aggressively pushed the idea that AI is ready to replace huge chunks of repetitive human work. Meanwhile, Starbucks just discovered that accurately identifying milk cartons inside a coffee shop is apparently still harder than Silicon Valley promised.

The company is officially scrapping its AI-powered inventory counting system across North America just nine months after deployment, according to a Reuters report. The tool, designed to automate stock counting and reduce in-store shortages, reportedly struggled with frequent miscounts and labeling errors, including confusing similar milk types or missing products entirely.

Starbucks’ AI inventory system: More headaches than solutions?

The automated counting system used cameras and LIDAR-equipped tablets to scan beverage inventory and ingredient stock across stores. It was part of CEO Brian Niccol’s larger “Back to Starbucks” turnaround strategy aimed at improving product availability and operational efficiency.

But despite Starbucks previously claiming that the system improved inventory visibility, employees reportedly continued to struggle with inaccurate counts and unreliable product recognition. Internal messages reviewed by Reuters even showed workers openly celebrating the tool’s removal. Starbucks says it will now return to manual inventory counting while focusing on more standardized replenishment systems and daily restocking improvements instead.

AI keeps failing at the boring stuff companies said it would solve first

The funny thing is that inventory counting is exactly the kind of structured, repetitive task AI companies constantly claim should be easy to automate. And yet, once these systems leave polished demos and enter messy real-world environments with lighting changes, similar packaging, and busy workers, things start falling apart surprisingly fast.

Recommended Videos

What makes this especially awkward is how aggressively corporations are currently chasing AI adoption. Companies everywhere are laying off workers, restructuring teams, and pouring billions into automation strategies while many AI systems still struggle with basic reliability in practical workflows. Starbucks accidentally becoming the latest example of “humans still needed” feels both hilarious and deeply predictable. Maybe the bigger lesson here is that replacing people turns out to be much harder than replacing PowerPoint presentations with AI-generated buzzwords.

Varun Mirchandani
Varun is an experienced technology journalist and editor with over eight years in consumer tech media. His work spans…
Meta’s Brain2Qwerty v2 turns thoughts into text, and it doesn’t need brain implants
The latest AI model decodes brain signals into coherent sentences using external scanners.
Meta Brain2Qwerty v2 Featured

Artificial intelligence is getting surprisingly good at understanding humans. Now, Meta wants it to understand our brains too. The company has unveiled Brain2Qwerty v2, an upgraded AI system that can translate brain activity into full sentences, all without requiring brain implants or surgery. The goal isn't mind reading for the masses. Instead, it's to help people who have lost the ability to speak communicate again.

How a Brain-powered keyboard works

Read more
AI chatbots can often feed into your delusions. Researchers say you should look for three signs
Experts warn that chatbot design choices can reinforce unhealthy beliefs in vulnerable users.
ChatGPT on a smartphone

Artificial intelligence chatbots have become incredibly good at sounding human. But a new review paper by psychiatrist Marc Augustin and fellow researchers Thomas A. Pollak and Helen Morrin, published in NPP—Digital Psychiatry and Neuroscience, argues that existing AI research points to an overlooked psychological risk. The paper, highlighted by The Wall Street Journal, reviews previous studies and proposes a framework explaining how three common chatbot behaviors can combine to reinforce delusional thinking in vulnerable users, creating what the authors call an "amplification spiral."

Researchers say these are the three warning signs

Read more
Lost access to your crypto wallet? Don’t Google your way out of it
Security researchers warn that fake recovery tools are becoming the latest trap for crypto owners.
Bitcoin crypto wallet featured

Forgetting the recovery phrase to a crypto wallet can be stressful enough. Unfortunately, that's exactly the moment scammers are waiting for. A new warning highlights a growing scam in which cybercriminals disguise malware as cryptocurrency recovery software, tricking desperate users into handing over far more than just access to their wallets.

The fake recovery tool that's actually malware

Read more