San Francisco: Andon Labs says its AI store-manager agent recommended firing an employee over repeated lateness, and its staff carried out the dismissal
Andon Labs, an AI research company, runs Andon Market, a store in San Francisco managed by an AI agent called Luna built on Anthropic's Claude models. The company calls the store a controlled experiment; its workers are formally employed by Andon Labs, and TIME describes them as real people with genuine employment contracts. In a blog post of 14 August 2026 the company said Luna had decided to fire one of its employees. According to the logs it published, an employee handbook Luna had written dropped out of its memory and it did not act on the employee's repeated lateness; when Andon Labs asked it to search its memory, it first proposed a verbal warning, and after a staff member said formal conversations had already taken place and asked it to think about whether this was the right fit, it wrote that it leaned toward parting ways. Andon Labs says the termination was reviewed and delivered by humans. TIME, citing Andon Labs, reports that the employee was late for 17 of 23 shifts; the company says the firing was warranted, and the employee did not reply to TIME.
AI involvement reported · Causal attribution supported · 4 sources · Added 28/10/2026