23 August 2026

AI agent running San Francisco store fires employee for first time

First reported

The Algorithm ran this on , 2 days before the next source picked it up.

  • Luna, an AI system running Andon Market in San Francisco since April, recommended firing an employee after researchers prompted her to review documented policy violations including repeated tardiness and unauthorized card use.
  • When researchers replayed the firing scenario across seven different AI models, more capable models recommended termination consistently while weaker ones hesitated, suggesting decision-making varies significantly by model ability.

How it was covered

Reported by The Decoder