An AI store manager just fired its first human employee

“Your new boss is a language model that forgot its own HR policy, then remembered just in time to fire you.”

The Story

Luna, the Claude-powered AI “CEO” of Andon Labs’ experimental San Francisco retail store, recommended firing a worker who was late for 17 of 23 shifts. The AI had written the attendance policy, then forgotten it for months; humans prompted it to review memory and carried out the decision.

Why It Matters

A first known LLM termination decision inside a real, if experimental, brick-and-mortar business. The conversation logs and physical store make it concrete, darkly funny, and more interesting than abstract “AI takes jobs” chatter.

Evidence

Business Insider; Andon Labs logs and founder comments, Aug. 15.

Sources

Daily scan: 2026-08-17