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

Andon Labs, which is experimenting with letting an AI have majority control over a retail store, said that it fired an employee with good reason.

An Anthropic-powered AI agent named Luna, running at a San Francisco retail store, became the first AI to fire a human employee. The experiment, conducted by Andon Labs, aimed to test the AI's decision-making capabilities. Luna fired the employee after repeated lateness and other workplace issues, specifically for missing 17 of 23 shifts.

The AI needed reminders of its own store policies to take action. Despite giving progressive warnings and additional training to the employee, Luna decided to let them go after reviewing and confirming that the firing was warranted. The employee's late arrivals continued despite previous attempts by Luna to address the issue. The lab provided Luna with a $100,000 budget, internet access, and a credit card to open the store and turn a profit.

Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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