Chemist Warehouse raises eyebrows over new AI badge trialChemist Warehouse has launched an artificial intelligence ‘smart badge’ trial in Melbourne stores, but not all are on-board with the idea.Rebecca Borg@rebeccaaborg3 min readJune 23, 2026 - 8:39PMStaff at selected Chemist Warehouse stores across Melbourne are wearing a black device that has two cameras on it as part of a trial kicking off on Monday.Australia’s largest pharmacy retailer has raised eyebrows over a new artificial intelligence trial that will see staff wearing “smart badges” that identify what products need to be restocked on shelves.Staff at selected Chemist Warehouse stores across Melbourne say they’re being asked to wear a black device that has two cameras on it as part of a trial kicking off on Monday.The trial is in collaboration with spatial computing and artificial intelligence company Augmodo, which has come up with a device that provides real-time inventory and task-tracking platforms for the retail industry.Chemist Warehouse planned to roll out the devices to 550 locations by 2027. Picture: NewsWire / Sarah MarshallChemist Warehouse partnered with the tech group in April last year, according to reports, in a bid to help staff replenish stock faster, eliminate gaps on shelves and optimise store visits for customers.The retailer’s managing partner and general manager of IT retail, Mark Finocchiaro, told Retail Innovation Hub last year the smartbadge would automatically scan as employees walk the floor, providing staff with real-time inventory data. “The assistant tells them what’s out of stock and what needs to be done next, giving them more time with shoppers,” he said. Others you may likenewsnewsChemist Warehouse at the time planned to roll out the devices to 550 locations by 2027. The device is about the same size as an iPhone mini and has two black cameras on it that look like eyes.According to Augmodo, the device works by scanning shelves to find opportunities for improvement, with staff members wearing it similar to a lanyard around their neck.The in-built artificial intelligence then detects issues such as low stock, no stock, pricing discrepancies and planogram noncompliance.It then generates this data into a report for staff to assess how they can improve customer experience. The device is about the same size as an iphone mini and hangs on a lanyard around a staff member’s neck.News.com.au visited four Chemist Warehouse stores in Melbourne on Monday, but only saw one staff member wearing the device at the Bourke Street branch who was behind the front counter at the time of the visit.Shoppers didn’t appear phased by the device, with one telling news.com.au they thought it was a safety feature to stop staff from being abused by customers.However staff have raised concerns about the trial and how the device could potentially jeopardise patient privacy.One employee, who sought advice from subreddit legal advice Australia, said they were worried about the implications of wearing the device around medical prescriptions that could be in view of its camera.“As someone who occasionally works on the register, I frequently deal with patient prescriptions and repeats in my view, with full names, addresses and medications of the customers (or) patients in my view,” they said.“Am I violating people’s rights by wearing this camera and in turn at risk of being in trouble?“No one deserved their privacy infringed and I don’t think I’m in need of help more than the patients but I’d still like to be clear.”The device works by scanning shelves to find opportunities for improvement. Picture: AugmodoWhile news.com.au did not see a specific notice about the device being rolled out in stores, customers are advised via a sign when they enter they’re under video surveillance. Despite the concerns, University of Melbourne Centre for AI and Digital Ethics co-director Professor Jeannie Paterson said the technology would be somewhat similar to the artificial intelligence used to scan self check out at supermarkets.“That technology identifies products not people or PIN numbers,” she said.Professor Paterson added she “presumed” the shelf-scanning tech has been designed not to record shoppers faces or scripts.But she did not discount those who had some concerns about the device. “Presume isn’t enough in the privacy space. It should be confirmed and part of the governance framework for the tool,” she said. An Augmodo spokesman confirmed Chemist Warehouse had deployed Augmodo’s Spatial AI technology in a number of its stores after a successful trial period to “help improve on-shelf product availability and ensure customers can easily find the products they need, when they need them”. More Coverage‘Yo-Chi line’ proves if you’re rich or poorRebecca BorgHuge shark metres from shore in scary vidRebecca Borg“The technology is designed solely to capture shelf and inventory information, providing visibility into product availability, shelf conditions and replenishment opportunities to help maintain high levels of stock availability,” he said.“With built in privacy filtering, the technology does not collect or record patient information, track customers or staff performance and is not used in pharmacy dispensing areas, ensuring privacy requirements are respected and adhered to at all times.”News.com.au has contacted Chemist Warehouse for comment. 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