Starbucks scraps AI inventory tool after nine months

Starbucks is discontinuing its AI-powered inventory management system, which was deployed across North American stores nine months ago. The tool, developed by NomadGo, was intended to automate tracking of perishable items like milk and syrups but frequently miscounted stock levels. The coffee chain will revert to manual inventory counts. The decision follows broader operational challenges under CEO Laxman Narasimhan, who has faced pressure to streamline operations and improve efficiency. The scrapped system is part of a larger trend where AI-driven inventory solutions have struggled with accuracy in complex retail environments. Starbucks has not announced a replacement technology.