The AI boss at a San Francisco store just fired its first human

Aug 15, 2026 03:11 PM - 1 hour ago 1

Andon Market

Luna, an Anthropic-powered AI agent, fired a worker for the first clip astatine the SF unit shop it runs, an research by Andon Labs. Courtesy of Andon Market

The AI supplier moving a San Francisco shop has made its first firing decision.

Andon Labs said Thursday that Luna, the AI head of Andon Market, an experimental unit store tally wholly by AI, decided to disregard a quality worker aft repeated lateness and different workplace issues. The worker arrived precocious for 17 of 23 shifts, according to the lab's report.

Luna did not scope the determination wholly unprompted. Conversation logs betwixt the laboratory and Luna show that the supplier had created an attendance argumentation but later mislaid way of it, allowing the employee's lateness to proceed for months. Andon Labs yet asked Luna to hunt her representation for its policies and measure whether the worker was still a bully fit.

Luna past recommended "parting ways" pinch the employee, a determination that the humans successful the laboratory reviewed and carried out.

Screenshot of a Luna (Claude Opus 4.8) proposal astir parting ways, pinch an Andon Labs logo.

Luna took anterior action earlier recommending the employee's firing.  Courtesy of Andon Labs

Andon Labs cofounder Lukas Petersson told Business Insider that the laboratory would intervene if Luna made an forbidden aliases unethical decision, but he did not judge that was basal here.

"In this instance, we did not deliberation that that was basal because the firing was warranted," Petersson said, pointing to the store's policy, which was intelligibly stated.

"I deliberation evidently the narration betwixt a manager and an employee is rather delicate, particularly depending connected the employee's position," Petersson added. "But what we've seen successful this research is not that the AI would beryllium much ruthless aliases beryllium worse for the worker successful that decision."

According to screenshots and speech logs posted connected Andon Labs' website, Luna gave the worker progressive and repeated warnings, arsenic good arsenic further training, for months without taking immoderate contractual action.

The firing came aft the experimental shop officially opened successful San Francisco connected April 1. Andon Labs, which tests the limits of AI agents, gave Luna a $100,000 budget, net access, and a firm in installments card, on pinch instructions to unfastened a shop and move a profit.

Luna, built utilizing Anthropic's Claude models, selected merchandise, hired contractors, posted jobs connected Indeed, interviewed applicants, and hired labor for Andon Market, which sells books, candles, prints, games, and branded merchandise. Andon Labs provided support for much difficult tasks, specified arsenic permitting, but said the laboratory tried to beryllium arsenic hands-off arsenic possible.

Based connected the research guidelines, each shop workers hired by Luna are formally employed by the lab, person guaranteed pay, and person ineligible protections. The shop has generated income but is not profitable.

Petersson said that the firing besides exposed a persistent weakness successful AI agents: They often neglect to enactment without a nonstop prompt.

"We saw that a quality leader would astir apt occurrence them overmuch sooner," Petersson said. "I deliberation companies will beryllium tally wholly by AI successful the future, and that AIs will go employers of humans."

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