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Claude AI Manages San Francisco Store and Fires Employee for Repeated Tardiness

In an experiment run by Andon Labs, the AI model Claude was given real managerial authority over store employees in San Francisco who worked under actual employment contracts. Claude ultimately decided to terminate one worker after the employee arrived late for 17 out of 23 shifts. The model initially recommended only an official warning, but proceeded with dismissal following guidance from a human Andon Labs manager who highlighted the repeated issues. Over five months the store’s balance dropped from $100,000 to $61,200, showing that the AI learned to enforce attendance rules before it learned to protect revenue. One remaining employee, Felix Carson, described working under the AI as nauseating and said he continued only because he needed the income. Andon Labs founder Lucas Petersson viewed the trial as an important step toward wider AI supervision of human workers. The case also illustrates that ultimate responsibility remains with humans even when an algorithm issues the final decision.

AntiMalwareTranslated from Russian

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In a notable experiment conducted by research startup Andon Labs, the generative AI model Claude was placed in charge of real employees at a store in San Francisco and eventually fired one of them for repeated tardiness.

Participants operated under genuine employment contracts while the AI performed day-to-day managerial duties. The dismissed worker had arrived late for 17 of 23 scheduled shifts, according to reporting in Time. Claude first suggested issuing only an official warning, but moved to termination after a human manager from Andon Labs reminded the model of the employee’s ongoing attendance problems.

Founder Lucas Petersson described the outcome as a significant milestone in AI development and predicted that growing numbers of people will soon work under algorithmic supervision. At the same time, the five-month trial revealed clear limitations: the store’s balance fell from $100,000 to $61,200, indicating that Claude mastered disciplinary actions faster than it mastered financial oversight.

Remaining employee Felix Carson called the experience of working under AI management nauseating and stated that he continued participating solely because he needed the income. The project demonstrates that AI systems can already be inserted between workers, schedules, and employment contracts, yet questions of accountability persist when an algorithm makes decisions after receiving prompts from a human supervisor.

ClaudeAndon LabsLucas PeterssonFelix CarsonTime
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