Researchers examine why some AI ads fail while others succeed
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International coffee chain Starbucks has discontinued an AI-powered inventory counting tool only nine months after implementing it. The tool was reportedly several years in development before becoming operational in North American stores during September 2025.
The Automated Counting system was intended to generate automated totals of syrups, milks, and related beverage products available in individual stores.
In theory, an employee would scan stock shelves with an AI-based app, which would recognise and count the individual items and create a report to avoid stock-outs. In practice, however, it would fail to register certain items on the shelves.
According to reports by Reuters news agency and other North American news outlets, a publicly circulated video shows a peppermint syrup bottle on a shelf going unregistered as the system scans the surrounding bottles on either side of it.
Promise of greater speed and fewer errors
“Where workers had previously tallied stock by hand, the app was meant to handle those counts automatically, with the promise of greater speed and fewer errors,” the Quartz news website reports.
“Getting the right products onto shelves has frustrated Starbucks leadership for years, with multiple chief executives citing stock gaps as a factor weighing on revenue.
“Inventory automation had been positioned as a centrepiece of the ‘Back to Starbucks’ turnaround, part of a broader technology push that also includes AI-driven tools for sequencing drink orders and supporting baristas during busy periods.”
When Starbucks launched Automated Counting last year, it said the technology would set the stage for “smarter supply chain optimisation”.
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