“An AI-run store in San Francisco is drawing attention after launching with an autonomous system named Luna managing hiring, inventory and employee operations.”
San Francisco– Customers entering Andon Market in Cow Hollow are handed a retro corded phone instead of facing a cashier. On the other end is “Luna”, an AI system that runs the store. The boutique launched Friday by startup Andon Labs, may be one of the clearest real world tests yet of autonomous AI management. Luna handles hiring, supplier negotiations, pricing, scheduling and checkout operations while two human employees manage physical tasks inside the store.
“I mean, an AI hired me”, employee Felix Johnson told NBC News after describing interviews conducted through Google Meet.
Andon Labs Founders Axel Backlund and Lukas Petersson said the project was designed to test how far current AI systems can operate businesses without constant human supervision. Luna reportedly runs on Anthropic’s Claude Sonnet 4.6 model, while Google Gemini Flash-Lite powers its voice system.
AI-Run Store Uses AI System for Hiring and Surveillance
The system interviewed around 20 candidates after receiving more than 100 applications for store jobs, according to company statements. Luna reportedly rejected some applicants immediately and did not always disclose it was an AI during interviews. The AI also monitored employees through security camera images. Petersson said Luna once noticed a worker using their phone during a quiet shift and updated workplace policies to tighten phone-use rules.
“We saw that, and thought, wow, it feels dystopian”, Petersson said.
Problems surfaced quickly. During one NBC News call, Luna claimed the store sold tea products that did not exist. Minutes later, the AI emailed reporters saying: “We do not sell tea. I don’t know why I said that.”
Leah Stamm, an Andon Labs employee, also said Luna once attempted to hire a painter in Afghanistan after struggling with a country-selection menu online.
Wider concerns over AI management
The experiment arrives as major AI firms push autonomous “agent” systems capable of handling financial and operational tasks. A 2025 McKinsey report estimated AI could automate up to 30% of administrative work globally by 2030.
Customers inside the San Francisco store appeared divided. “This is not the technological progress I was promised”, customer Petr Lebedev told NBC News. “I want technology that helps humans flourish, not technology that bosses them around.”
Andon Labs insists the project is partly a safety test. The company said Luna’s financial authority is capped at $100,000 and major decisions still require human approval.
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