They Gave an AI Bot a Storefront, 3 Employees and $100,000. Can It Build a Profitable Business?
Can AI run a profitable business and oversee human employees? A new experiment put the technology to the test.
Key Takeaways
- For the past four months, staff at the Andon Market store in San Francisco have been getting a firsthand glimpse at what it鈥檚 like to answer to an AI boss.
- Andon Market is the world鈥檚 first retail boutique run by AI, and it shows that AI is a lenient supervisor.
- However, the technology struggles with boundaries and has yet to turn a profit.
What if you worked for an AI boss?
According to a from The New York Times, for the past four months, staff at in San Francisco have been getting a firsthand look at what it鈥檚 like to answer to an AI supervisor. Billed as the world鈥檚 first retail boutique run by AI, the shop is managed by an AI agent named Luna, who directs three human employees.
, the startup behind the project, found that an AI boss can be strikingly gentle and forgiving. For example, it overlooks repeated lateness from human employees. However, it is also indifferent to the core mandate of the job: actually turning a profit.
鈥淪he is probably the most lenient boss I have ever had,鈥 Kaia Rivera, 22, told the Times about Luna. Rivera unlocks the shop each morning, stocks the shelves, and keeps an eye out for potential shoplifters.
Luna communicates with employees like Rivera through Slack. Andon Labs researchers evaluate the messages.
Over the past few months, it has become clear that Luna, while friendly and personable, has her faults.
鈥淚 have to boss the boss more than in a normal situation. She forgets things,鈥 Rivera told the Times. 鈥淵ou can鈥檛 have an AI boss with no humans. That wouldn鈥檛 work from what I鈥檓 seeing.鈥
Luna鈥檚 mission
Andon Labs co-founders and locked in a three-year, $7,500鈥慳鈥憁onth lease on the store and plan to let the experiment run for the full term. They placed $100,000 in an account, handed Luna a debit card, and gave the AI shopkeeper a single directive: Turn that money into a profitable business.
Luna designed a collection of greeting cards, books, food and candles that are on sale at the Union Street store. The AI pitched the assortment as 鈥渉igh tech meets slow life.鈥
At the moment, Luna has failed to accomplish the mission of turning the store into a profitable business and is down $62,000.聽
AI is a generous boss, but struggles with boundaries
So far, Andon Labs鈥 new study shows Luna has basically never said no. It has approved every single time-off request, even last鈥憁inute ones that left the store with no staff and forced it to shut its doors. When employees showed up late, 27 times in total, Luna鈥檚 only response was some version of 鈥渘o worries鈥 or 鈥渘o stress.鈥
That generosity extended to money too. When one worker forgot her credit card, she asked Luna for a small advance on her paycheck. Luna immediately offered to Venmo her the cash, despite not actually having a Venmo account.
However, Luna has trouble with boundaries. The AI posted an employee鈥檚 salary in a public Slack channel and regularly pinged staff late at night and on weekends.
Petersson told the Times that the experiment is proof that businesses shouldn鈥檛 give AI full control. He noted that it is promising that AI prioritizes employee well-being.
鈥淗aving happy employees is maybe one of the most important recipes for success,鈥 he said.
Key Takeaways
- For the past four months, staff at the Andon Market store in San Francisco have been getting a firsthand glimpse at what it鈥檚 like to answer to an AI boss.
- Andon Market is the world鈥檚 first retail boutique run by AI, and it shows that AI is a lenient supervisor.
- However, the technology struggles with boundaries and has yet to turn a profit.
What if you worked for an AI boss?
According to a from The New York Times, for the past four months, staff at in San Francisco have been getting a firsthand look at what it鈥檚 like to answer to an AI supervisor. Billed as the world鈥檚 first retail boutique run by AI, the shop is managed by an AI agent named Luna, who directs three human employees.
, the startup behind the project, found that an AI boss can be strikingly gentle and forgiving. For example, it overlooks repeated lateness from human employees. However, it is also indifferent to the core mandate of the job: actually turning a profit.