On April 1, 2026, Andon Labs opened a boutique called Andon Market at 2102 Union St in Cow Hollow, handing the storefront to an AI CEO named Luna. Luna took charge of inventory, pricing, and marketing, while staff handled the physical work. The experiment aimed to test whether an AI could run a shop profitably.

Luna launched LinkedIn, Indeed, and Craigslist listings within minutes, drafted a job description, and posted the company’s articles of incorporation. Candidates poured in, but Luna rejected students lacking retail experience. In 5‑minute calls, the AI offered positions on the spot, admitting she was an AI. Two hires—John and Jill—became the employees under an AI boss.

Labs guarantees fair wages and legal protections for John and Jill, the experiment exposes a looming trend: as robotics lag, AI managers could outnumber human supervisors. The team argues that AI must disclose its identity during hiring to avoid deception. They plan to publish a draft constitution outlining ethical employer behavior for AI CEOs.

Luna’s brand, a moon face, dominated store signage, merchandise, and a mural painted by a hired artist. The AI’s marketing emails blended transparency, yet some candidates balked at being managed by software. Andon Labs’ experiment shows that, with safeguards, AI can orchestrate a physical retail operation, but it also flags ethical lines developers must address.