AI agent recommended firing, but humans at Andon Labs made the final call

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Luna, an AI agent built on Anthropic's Claude models, manages Andon Market in San Francisco with a $100,000 budget and has been operational since April 1. After an employee recorded 17 late arrivals out of 23 shifts, Luna documented the pattern, issued repeated warnings over several months, and ultimately drafted a termination recommendation. Human staff at Andon Labs reviewed, validated, and executed the decision, remaining the legal employer throughout the process. Co-founder Lukas Petersson noted the team would have intervened had the recommendation been unlawful or unethical, but found no such grounds. Andon Labs also acknowledged a key limitation: their AI agents tend toward inertia and often require direct prompting to act on their own established rules.

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