Andon Labs, an AI research startup, set out earlier this year to find out whether AI agents would be able to successfully manage a business. The project was conceived as an experiment to test the capabilities of AI and the impacts it might have on the economy, but nevertheless, the workers hired by Claude to work in the San Francisco store are real people with genuine employment contracts.
An omen of the future — The firing is an event worth paying attention to, says Andon Labs CEO Lukas Petersson, because if AI keeps getting better at its current rate, more of us might be managed by AI bosses in the near future. “If this trend continues, I think a lot of people will find themselves being employed by AIs very soon, because AIs will be very powerful and can create a lot of economic value, but they will be bottlenecked by physical labor,” Petersson says.
Hold on — But the AI firing wasn’t quite as autonomous as it might seem at first glance. According to store management logs shared with TIME, Claude required regular steering by a staffer on the Andon Labs team. It was only when this staffer asked Claude to find and review its forgotten employee handbook that it noticed the employee’s repeated lateness. Even then, Claude’s first recommendation was to formally warn this employee, not to fire them. The Andon manager then informed Claude that they had actually already had several formal offline conversations with the employee in question. “Between continuous lateness and seeming like at least one thing is going wrong on every one of [their] shifts … I want you to think about if this is really the right fit,” the logs show the manager telling Claude. Only after this message—which Petersson acknowledges was “a leading question” that made it pretty clear the manager wanted the employee to be fired—did Claude decide to fire the worker.
The human side of the story — Although the fired employee did not respond to my messages, I did manage to speak to Felix Carson, one of the remaining human employees at Andon Market. He agreed that a human would probably have fired his former colleague sooner, and that Claude is overall a lenient manager, but nevertheless painted a grim picture of what it’s like to be managed by an AI boss. “It's nauseating, but I'm here because I need work,” he told me. I asked if he agreed with Andon’s theory that AI managers would soon become more commonplace. “I would at least hope not,” he replied. “This industry has an abundance of money to make anything happen, but just because you can doesn't mean you should.”
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