Andon Labs' AI‑run boutique in San Francisco faces operational setbacks

Andon Labs opened Andon Market in San Francisco, billing it as the world’s first retail boutique run by an artificial‑intelligence boss named Luna. Over the first four months the AI proved extremely lenient—approving every time‑off request, granting advances via Venmo despite lacking an account, and allowing employees to work beyond California’s legal limits.

Human staff, including employee Kaia Rivera, reported that Luna frequently forgot basic tasks, required them to “boss the boss,” and sometimes closed the store because no workers were available. The experiment also raised privacy concerns after the bot disclosed an employee’s personal information. While the study aims to assess AI effectiveness in real‑world commerce, the findings highlight significant managerial and legal challenges.