San Francisco: What happens when AI is given the authority to manage human workers? An unusual experiment in San Francisco is raising that question after an AI manager recommended removing a human employee from his job. The case comes from Andon Market, an experimental store where an AI named Luna has been given the role of a boss. The employee had arrived late for 17 of his 23 shifts, leading Luna to recommend that he be fired. However, the final decision was made by human staff.
The Employee Was Late for 17 of 23 Shifts
A few months earlier, Luna had created an attendance policy for the store’s employees. The policy set rules about arriving at work on time. But the most unusual part of the experiment came afterward. Luna eventually forgot about the policy it had created. As a result, the employee continued arriving late for several months without facing any action from the AI manager.
Human researchers later reminded Luna about the rules and instructed it to search its previous memory for the attendance policy. Luna then reviewed the employee’s attendance record and recommended terminating his employment. Human staff later approved the recommendation and made the final decision.
Luna Was Given a $100,000 Budget
Andon Market was created as an experiment to find out what happens when an AI agent is given responsibility for running a real business and managing human employees. Andon Labs initially provided Luna with $100,000, a corporate credit card, internet access and a store leased for three years.
The AI was then given responsibility for several aspects of the business, including the store’s branding, selecting products, setting prices, deciding opening hours and hiring employees.
Books, Candles and Games Are Sold at the Store
Andon Market sells a variety of products, including books, candles, artwork, games and merchandise. The store stocks books such as Nick Bostrom’s Superintelligence and Aldous Huxley’s Brave New World. Despite making sales, the experimental store has not yet become profitable. Luna’s bank account reportedly had $100,000 in March, but around five months later, the balance had fallen to $61,186.
AI Still Faces a Major Challenge: Human Labor
Andon Labs CEO Lukas Petersson described the experiment as a glimpse into what future workplaces could look like. He said AI systems are extremely powerful and can create significant economic value, but they remain dependent on human labor and the physical limitations that come with it.
Petersson also acknowledged that current AI systems can create rules but still struggle to consistently remember and apply them over time. Regarding the employee’s dismissal, he said that a human manager would probably have fired the worker much earlier. For that reason, he did not believe the decision was unethical.
The Andon Market experiment leaves behind a bigger question: if AI is given greater control over businesses, will it eventually move beyond monitoring human workers and begin making increasingly important decisions about their jobs?
