AI Appointed to Manage Human Workers – and Fired One of Them

For the first time in recorded history, an AI-based manager – an advanced version of the Claude model – made an autonomous decision to fire a human employee, as reported by Time magazine. The incident occurred at a boutique store in San Francisco that is entirely managed by AI, as part of an experiment by Andon Labs. Claude managed shifts, inventory, and performance, and in July determined that an employee did not meet standards and terminated their employment. Experts call this a pivotal moment in labor relations.

For the first time in recorded history, an AI-based manager – an advanced version of the Claude model – made a completely autonomous decision to fire a human employee, as reported by Time magazine. The incident occurred at a boutique store named "Andon Market" in San Francisco, which is entirely managed by artificial intelligence, as part of an experiment by Andon Labs. Claude was responsible for scheduling shifts, managing inventory, and evaluating performance. Last July, after analyzing data, the model determined that one of the employees did not meet the required standards – and terminated their employment. Experts describe the event as a pivotal moment in labor relations, as the machine has transformed from a tool to be executed into the deciding authority. While supporters point to objectivity and efficiency, critics warn of a future devoid of empathy, where humans are measured as mere lines of code.