Starbucks has scrapped an AI-powered inventory system used across its North American stores after months of reported inaccuracies, including confusion between oat milk and dairy products, according to internal communications seen by Reuters. The move marks an abrupt reversal for a high-profile technology push that had promised slicker stock control but instead exposed the risks of relying on automation for everyday store operations.
The decision ends a nine-month rollout of the tool, which had been introduced as part of chief executive Brian Niccol's effort to address persistent stock shortages that have weighed on sales. Its withdrawal highlights the challenges the company faces as it leans on automation to improve store performance and supply chain reliability.
