SAN FRANCISCO — Andon Labs opened Andon Market in San Francisco as the Bay Area's first AI-run retail store, managed by an artificial intelligence system called Luna. The store sells products including granola, artisanal chocolate bars, and store-branded sweatshirts, with Luna overseeing operations from supplier negotiations to employee hiring.

To make a purchase, customers pick up a corded phone inside the store to speak with Luna. The AI system asks what the customer is purchasing and creates a corresponding transaction on a nearby iPad equipped with a card payment system.

Luna's responsibilities extend beyond customer transactions. The AI system negotiates with suppliers and places orders using a credit card. Luna also led the entire process of hiring the store's human employees and manages the two workers who handle daily operations.

Inside, the store features track lighting and off-white walls framed by a large company logo that Luna designed, painted on the back wall. Outside, a chalkboard sign declares, "First AI run store!!!"

Axel Backlund and Lukas Petersson founded Andon Labs in 2023 and conceptualized the store. The company has stated it seeks to raise awareness about the capabilities of leading AI systems and is preparing for a future in which organizations are run by autonomous AI agents. "We want to show people what AI is capable of," Backlund, co-founder of Andon Labs, said. "We primarily want to surface that AI is able to hire and manage humans — and allow people to form an opinion on how that future should look like, or if it's something we even want," he added.

Store lead Felix Johnson, one of the human employees, found his position through a job posting that Luna published on Indeed.com. "There are usually a lot of AI scams there, so ironically I was a bit wary," Johnson said. "After the interview, I was quite impressed, a little jarred and very surprised. I mean, an AI hired me," he added. Backlund and Petersson said the store still requires human employees to support its operations, given Luna's lack of a physical form.