New Delhi: In a groundbreaking move for workplace automation, an AI agent managing an experimental San Francisco retail shop has recommended terminating
a human worker after the staffer was late for 17 out of 23 shifts.
The shop, called Andon Market, is run by an AI named Luna. It was set up by a company called Andon Labs to see how well an AI can run a real business.
When Luna checked the employee’s time records and saw how often they showed up late, it decided it was time to let the worker go. Andon Labs posted about the news on X, calling it the first known time an AI boss has fired a human.
“For the first time (that we know of), an AI boss has fired a human employee. Luna, the AI running our store in San Francisco, decided to part ways with an employee over repeated lateness,” the company wrote.
“Luna was running Claude Opus 4.8 at the time, but most models would have done the same.”
Even though the AI made the decision, human managers double-checked the work and held the actual meeting to fire the worker.
How luna runs the store
To get the shop started, Andon Labs gave Luna a $100,000 budget, a corporate card, internet access, and a three-year store rental. The store opened on April 1 and sells items like books, candles, artwork, games, and clothes.
Luna acts as the main store manager. It picks products, sets prices, decides opening hours, writes job ads, interviews people, and hires staff. Human employees handle physical tasks and legal paperwork, such as getting city permits. All human staff work directly for Andon Labs with guaranteed pay and legal benefits.
Why the employee was fired
Months before, Luna wrote a worker handbook with attendance rules, but it later forgot to track them. The worker kept showing up late, even after getting warnings and extra training.
Researchers then told Luna to look back at its rulebook and review the worker’s history. A human staff member also reminded Luna that several talks about the tardiness had already happened.
After checking everything, Luna recommended letting the worker go. It also offered a second choice giving a final written warning with two weeks to improve and pointed out that a human should deliver the final decision. Human managers reviewed Luna’s advice and carried out the dismissal.
Curated by- Ramansh Dhadwal
