Starbucks Scraps AI Inventory App in North America
Starbucks has retired an AI-powered inventory tool designed to automate product counts after the app frequently mislabeled items and missed shortages. CEO Brian Niccol is now shifting focus toward standardizing manual inventory processes and improving supply chain logistics to ensure product availability.
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STARBUCKS CORP terminated its AI inventory tool across North America this week, nine months after a rapid rollout in September. CEO Brian Niccol previously touted the technology as a fix for product shortages that have hampered sales growth. Investors are monitoring Niccol's ability to restore operating margins, which fell to 9.9% from 18% over two years.
