Starbucks has retired its AI-based “Automated Counting” system for inventory in North American stores as of 21 May, Reuters reported, citing an internal newsletter and two people familiar with the situation.

The tool was introduced under CEO Brian Niccol to address product shortages that he has said are weighing on sales.

Deployed nine months ago across the chain’s North American stores, Automated Counting aimed to improve oversight of stock levels for items such as milk and other beverage components.

After the rollout of the AI app, staff used tablets to scan shelves holding syrups, milks and other beverage items, with the system relying on LiDAR [light detection and ranging] data.

However, the app frequently produced faulty readings, miscounting or mislabelling products.

According to the news agency, an internal company newsletter stated: “Beverage components and milk will now be counted the same way you count other inventory categories in your coffeehouse.”

In February, Starbucks had told Reuters that the system was helping improve product availability, a key metric in Niccol’s turnaround push.

However, in its latest statement to the news agency, the company announced the end of the programme.

Starbucks said it is also working on more frequent daily store replenishments and further supply chain changes.