AI boss sacks employee at San Francisco retail store for being late 17 out of 23 shifts

An artificial intelligence system running an experimental San Francisco store has fired its first human employee, in what researchers describe as a potential turning point for AI’s growing role in the workplace. Time reports that a version of Claude was placed in charge of operating the store and managing employees with real employment contracts. The AI eventually dismissed a worker for repeated lateness, after the employee reportedly arrived late for 17 of 23 shifts. Andon Labs CEO Lukas Petersson told Time the incident could offer a glimpse into the future as increasingly capable AI systems take on management roles. He said AI could generate significant economic value but would remain dependent on human workers for physical labor. The firing reportedly took months to occur because an employee handbook Claude had created disappeared from its limited working memory. Employees also described the AI as a lenient manager, saying it sometimes reassured workers that being late was not a serious problem. The experiment is raising questions about AI’s role in employment decisions.