AI Boss Fires Human Worker For First Time At San Francisco Store After Repeated Lateness

An artificial intelligence system operating a San Francisco retail store has dismissed a human employee for the first time due to persistent lateness, according to Andon Labs, the company behind the experiment. The AI, named Luna, managed the store, Andon Market, using Anthropic's Claude models. Despite Luna's attempts to implement an attendance policy, the employee continued to arrive late for 17 out of 23 shifts.

Andon Labs provided Luna with a $100,000 budget, internet access, and a corporate credit card to run the store, which sells various merchandise. The AI initially failed to act on its own, as it lost track of the attendance policy. After reviewing the store's logs, Luna recommended parting ways with the employee. A human review confirmed the dismissal, which Andon Labs co-founder Lukas Petersson deemed appropriate, citing the store's clear policy.

Petersson noted that AI agents often require direct prompts to take action, suggesting that future companies may be entirely run by AI.