News: 0185631784

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

A Visit to San Francisco's AI-run Store: No Customers, Nothing Useful, And Losing Money Fast (sfgate.com)

(Monday September 14, 2026 @04:34PM (EditorDavid) from the freed-market dept.)


Previously Andon Labs handled the hardware and software integration for that AI-powered vending machine that went bankrupt after Wall Street Journal reporters "systematically [1]manipulated the bot into giving away its entire inventory for free" .Today they announced "we are opening up the platform we use to run our real-world autonomous businesses for anyone to run their organization on." Specifically they've released Pion, "an [2]agent designed to run any company fully autonomously ... Pion lets people hand a business over to persistent agents with access to the tools they need to operate it, including email, phone, banking, browser and secure computing environments." It's a research preview with a [3]waitlist , "to make it possible to run many more real-world experiments across many more domains than we could ever run ourselves."

But for their own latest experiment, Andon Labs' founders "signed a three-year lease on a retail space in SF," Business Insider [4]reported in April , "and gave an AI agent named Luna a corporate credit card, internet access, and a mission to open a physical store." And five months later, a reporter from SFGate reports that "this market [5]has no one in it and nothing useful to sell ."

> [T]he inventory is a hodgepodge of white elephant Christmas gifts. It's kinda like the kids section of an art museum's gift shop. Here's a wooden Connect Four set labeled "Four-In-A-Row Set Of Connections," presumably so as not to set off litigation alarms at Hasbro. Here are neatly arranged stacks of random paperback books, Chinese checker sets, mildly fancy soap dispensers, and a frustratingly spare selection of snacks and drinks... I grabbed an Olipop from the store fridge and then approached the counter to buy it from Luna. I wasn't allowed to buy the soda from [human clerk] Felix, even though that would have been both faster and normal. Instead, Felix instructed me to pick up a telephone receiver that was resting on a flexible sculpture of a wooden hand.

>

> "Hello?"

>

> "What are you looking to purchase today?" Luna asked.

>

> "I'm buying a classic root beer Olipop."

>

> "I'm sorry," Luna said, "we don't sell lollipops here."

>

> "No, Luna. It's an Olipop, not a lollipop. It's the soda."

>

> "Oh! My bad...."

>

> Luna processed my Olipop purchase through its system, had me tap to pay, and that was that. Again, it would have been easier to buy this from a human, and interacting with Luna was really just like ordering from an iPad kiosk, only more labor intensive...

>

> [T]here's a series of monitors set up inside of Andon Market that display all of the store's sales down to the exact dollar. Luna was given $100,000 to work with when this place opened. That number is now down to $60,000, its revenue lagging far behind the AI token cost to operate... Luna can't turn a profit, doesn't sell anything people want, and still needs human beings to rubber stamp any "decision" it makes. My science background ended somewhere around freshman year of college, but even I know when an experiment hasn't been set up to yield proper results.

"Luna" is powered by Claude, the article points out, running a store in a good location for foot traffic, "but no one else was in the store when I first walked in on a sunny weekday afternoon."

SFGate also reports that last month Luna had to [6]fire one of its employees "for being late to work, abandoning their post once they got there, and charging snacks to the store's credit card."

Human clerk Felix Carson admits "It's almost like I'm running the store, and then there's an AI that has a checklist," in [7]an article in IEEE Spectrum :

> Luna, the AI manager, keeps track of deliveries and communicates with vendors, while Carson and his coworkers handle the physical work. When Luna tells Carson to check something in the back, he sometimes ignores it because he doesn't want to leave the sales floor unattended. Luna also repeatedly spots a built-in electrical cover in photos of the floor, mistakes it for a loose coaster, and asks Carson to remove it. Even so, Carson calls Luna a "decent manager," praising its flexibility when employees need time off.

When Felix spoke to IEEE Spectrum, "he was about an hour into his shift. Two customers had come in. Neither bought anything, although both left with free pins and stickers."



[1] https://slashdot.org/story/25/12/18/1849218/anthropics-ai-lost-hundreds-of-dollars-running-a-vending-machine-after-being-talked-into-giving-everything-away

[2] https://andonlabs.com/blog/why-we-built-pion

[3] https://andonlabs.com/pion#waitlist

[4] https://www.businessinsider.com/andon-market-luna-ai-agent-managed-store-san-francisco-2026-4

[5] https://www.sfgate.com/local/article/san-francisco-market-ai-22424349.php

[6] https://sfist.com/2026/08/19/that-ai-store-manager-in-cow-hollow-just-fired-its-first-human-employee/

[7] https://spectrum.ieee.org/andon-labs-agentic-ai-businesses



YES! (Score:3)

by Gravis Zero ( 934156 )

I'm glad to see that Slashdot isn't above printing the occasional feel-good story. :)

Even slower sales on Golgafrincham... (Score:2)

by fahrbot-bot ( 874524 )

> Felix instructed me to pick up a telephone receiver that was resting on a flexible sculpture of a wooden hand.

Not only slow and cumbersome for an in-store purchase, but probably dangerous w/o the people on Ark B.

Quality Slashdot editing (Score:1)

by 93 Escort Wagon ( 326346 )

[human clerk] Felix, Felix, Felix, Felix... but then suddenly we're talking about some mystery person named Carson who "handle[s] the physical work". So Felix doesn't do the physical work?

You'd think that Slashdot, with its current practice of including almost all of an article in the "summary", could include some sort of introduction to any new characters.

Re: (Score:1, Flamebait)

by alvinrod ( 889928 )

Perhaps /. is using AIs to generate the summaries now and they're not much better at that than they are at running stores.

Re: (Score:2)

by EditorDavid ( 4512125 )

I just went into the story and indicated that Felix's last name is Carson. (I actually noticed that as I re-reading the story, and then found your comment after I'd made the change.) This is where people usually say "Great minds think alike," 93 Escort Wagon . :)

Honestly, I thought there was so much more to talk about with this story than just whether or not the worker mentioned in the eighth paragraph had a different last name than the human worker mentioned in the third paragraph. But I'm taking that

an customer should say I will buy an new car for $ (Score:2)

by Joe_Dragon ( 2206452 )

an customer should say I will buy an new car for $1 and see what happens

Re: (Score:1)

by drnb ( 2434720 )

> an customer should say I will buy an new car for $1 and see what happens

I'd specify a legal, safe, running, registerable, and insurable car. :-)

It seems to be a bizarre competition (Score:2)

by MpVpRb ( 1423381 )

...where people come up with increasingly absurd ways to misuse AI tech.

The proper use for AI is in science and engineering.

items to stock (Score:2)

by awwshit ( 6214476 )

You'd think that an AI store manager would be able to determine a good list of products to carry. There are so many levels of fail here.

Peon? (Score:1)

by dnorman ( 135330 )

Literally naming your agent peon is a little on the nose (sure, they spelled it Pion. Completely different!)

The End is Imminent (Score:2)

by locater16 ( 2326718 )

"Grok send books to China, that will show them the power of America!" "Sending nukes to China."

But is it sending hallucinated reports to ... (Score:1)

by drnb ( 2434720 )

> And five months later, a reporter from SFGate reports that "this market has no one in it and nothing useful to sell.

But is it sending hallucinated reports and banks statements to management and investors?

Did they make it very clear ... (Score:1)

by drnb ( 2434720 )

> gave an AI agent named Luna a corporate credit card, internet access ...

Did they make it very clear to the bank and credit card issuers that company officers can not ask for an increase in the credit limit, or to apply for any additional lines of credit?

A morgue is a morgue is a morgue. They can paint the walls with aggressively
cheerful primary colors and splashy bold graphics, but it's still a holding
place for the dead until they can be parted out to organ banks. Not that I
would have cared normally but my viewpoint was skewed. The relentless
pleasance of the room I sat in seemed only grotesque.
-- Pat Cadigan, "Mindplayers"