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

Luna, an Anthropic-powered AI agent, fired a worker for the first time at the SF retail store it runs, an experiment by Andon Labs.

Courtesy of Andon Market Luna, an Anthropic-powered AI agent, fired a worker for the first time at the SF store it runs.

The SF retail store run by AI is an experiment by Andon Labs to test agentic abilities.

Luna needed nudging and reminders of its own store policies to act, demonstrating limitations.

The AI agent running a San Francisco store has made its first firing decision.

Andon Labs said Thursday that Luna, the AI manager of Andon Market, an experimental retail store run entirely by AI, decided to dismiss a human employee after repeated lateness and other workplace issues.

The employee arrived late for 17 of 23 shifts, according to the lab's report.

Luna did not reach the decision entirely unprompted.

Conversation logs between the lab and Luna show that the agent had created an attendance policy but later lost track of it, allowing the employee's lateness to continue for months.

Andon Labs eventually asked Luna to search her memory for its policies and assess whether the worker was still a good fit.

Luna then recommended "parting ways" with the employee, a decision that the humans in the lab reviewed and carried out.

Luna took prior action before recommending the employee's firing.

Courtesy of Andon Labs Andon Labs cofounder Lukas Petersson told Business Insider that the lab would intervene if Luna made an illegal or unethical decision, but he did not believe that was necessary here.

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