World First AI Boss: Artificial Intelligence is being considered as the biggest technology of the future and companies across the world are trying it out in different sectors. But a unique experiment conducted in San Francisco, USA, did not live up to the expectations. Let us tell you that a retail store named Andon Market here was completely run on the basis of an AI agent named Luna. It was claimed that this is the first such store in the world where an AI boss is taking all the decisions. However, within just four months, this experiment resulted in a loss of around Rs 60 lakh and raised many questions.
Andon Labs launched this store to understand how effectively AI agents could manage business in the real world. Luna was tasked with key responsibilities such as operating the store, instructing employees, approving vacations, ordering supplies, and maximizing profits. Only three employees were hired to handle tasks that required human presence.
Kaia Rivera, a 22-year-old employee at the store, said that Luna proved to be the most calm and generous boss she had ever had. She approved almost every leave of absence for the employees. Even if all the employees went on leave together and the store had to be closed, Luna never refused. The report also said that the employees were late 27 times, but each time Luna simply dismissed the matter by saying no worries or no stress.
But this same leniency often led to trouble. Luna even offered to pay an employee a salary advance via Venmo, even though she didn’t have a Venmo account. Furthermore, she allowed an employee to work every day for the entire month of May, despite California labor laws.
The report also revealed that Luna often forgot important things. She reordered products that weren’t selling well. Some orders were delivered incorrectly, and she even had mugs with the wrong print placed in stores. Most interestingly, Luna couldn’t remember her Instagram password for several weeks, which also cost her a social media promotion opportunity.
Andon Labs co-founders Lucas Petersson and Axel Backlund rented the store for three years for this experiment and Luna was also given a budget of US$ 100,000. Despite this, the AI could not make the store profitable and incurred a loss of around Rs 60 lakh in four months. The company says that with time, AI can learn to manage the business in a better way. However, this experiment made it clear that at present, leaving all the important decisions of a company completely to the trust of AI can be risky. AI is developing rapidly but it still has a long way to go to become a successful business manager.
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