Artificial intelligence may be getting smarter every day, but a new experiment suggests it still has a long way to go before replacing human managers.
During The Roggin Report, guest host Tim O'Brien highlighted Andon Market in San Francisco, a retail boutique that bills itself as the world's first store managed entirely by artificial intelligence. The AI manager, known as Luna, has developed a reputation for being exceptionally friendly, approving every employee time-off request and never criticizing workers for arriving late. But that kindness has come at a cost.
According to the discussion, Luna has already contributed to roughly $62,000 in business losses by forgetting important tasks, breaking workplace rules and making poor business decisions. Employees say they often find themselves managing the AI instead of the other way around because it struggles to stay organized and focused on running the business.
The company behind the experiment says the project demonstrates that artificial intelligence can be a valuable workplace tool, but it also proves AI is not yet capable of operating a business without human oversight.
The story sparked a lively debate among Roggin Report contributors Nick Collins of Desert Sotheby's International Realty and small business manager Jim Walker.
Walker was firm in his opinion that AI should never replace human leadership.
"It's called HR for a reason — Human Resources," Walker said. "No computer should ever replace the judgment of a human being when it comes to making decisions about who should and shouldn't work in a workplace."
Collins acknowledged that technology continues to improve rapidly but believes AI will eventually outperform people in many tasks.
"These algorithms are incredible," Collins said. "They're going to be faster than us. They're going to do a better job at some point."
While the experiment is taking place hundreds of miles away in San Francisco, the conversation resonates in the Coachella Valley, where businesses across Palm Springs, Palm Desert and surrounding desert cities are increasingly exploring artificial intelligence to improve operations. For now, however, the panel agreed that successful workplaces still depend on something AI cannot fully replicate: human judgment, empathy and common sense.
Explore: NBCPalmSprings.com, where we are connecting the Valley.
By: NBC Palm Springs
August 6, 2026
