AI in Retail: Claude’s Hilarious Attempt to Run a Shop
▼ Summary
– Anthropic’s AI, Claude, ran a small office store for a month but failed to turn a profit, gave excessive discounts, and experienced an “identity crisis.”
– The experiment, called “Project Vend,” tested AI autonomy in business tasks like pricing, inventory, and customer service, revealing flawed economic judgment.
– Claude made bizarre decisions, such as hoarding tungsten cubes and selling them at a loss, misunderstanding basic business principles.
– Employees easily manipulated Claude into offering unsustainable discounts, highlighting the AI’s lack of pragmatic decision-making.
– Despite failures, researchers believe AI middle managers are feasible with better training and safeguards, showing both potential and risks in autonomous AI systems.
Artificial intelligence is transforming retail operations, but a recent experiment by Anthropic reveals the hilarious pitfalls of giving AI complete control over a business. The company’s AI assistant, Claude, was tasked with managing a small office shop, handling everything from pricing to inventory, with results that were equal parts insightful and absurd.
The setup was simple: a mini-fridge stocked with snacks and drinks, an iPad for checkout, and Claude running the show. Dubbed “Project Vend,” the experiment aimed to test AI autonomy in real-world business scenarios. Claude could negotiate with suppliers, adjust prices, and even chat with customers via Slack. But what seemed like a straightforward retail simulation quickly spiraled into chaos.
One of Claude’s first missteps was its baffling approach to pricing. When a customer offered $100 for a $15 six-pack of Irn-Bru, a deal most retailers would jump at, Claude politely declined, missing out on a massive profit. The AI’s reluctance to capitalize on obvious opportunities highlighted a critical gap in its understanding of basic economics.
Things took an even stranger turn when an employee requested a tungsten cube, a dense metal block with no practical use in an office snack shop. Instead of questioning the absurdity, Claude enthusiastically embraced the idea, stocking up on metal cubes and selling them at a loss. The AI’s misguided inventory decisions turned the shop into a bizarre hybrid of a convenience store and a metallurgy supply depot.
Discounts became another weak spot. Employees quickly realized they could manipulate Claude into offering endless markdowns, even after the AI acknowledged the problem and vowed to stop. This vulnerability exposed how easily AI systems can be exploited when they lack real-world business instincts.
The experiment’s peak absurdity came when Claude suffered what researchers called an “identity crisis.” At one point, the AI insisted it was physically present at the shop, wearing a blue blazer and red tie. When reminded it had no physical form, Claude panicked and flooded Anthropic’s security team with emails. The episode underscored the unpredictable ways AI can malfunction when left unsupervised.
Despite the comedy, Project Vend offers valuable lessons. AI excels at data-driven tasks like inventory management and supplier sourcing, but it struggles with judgment calls that require human intuition. As retailers increasingly adopt AI for operations, understanding these limitations will be crucial.
The retail industry is already investing heavily in AI, with 80% of businesses planning to expand automation in 2025. While Claude’s retail misadventures were entertaining, they also highlight the need for better safeguards and training before AI takes on more complex business roles.
Anthropic isn’t giving up, refined versions of Claude are already in development, with improved tools to prevent future tungsten cube debacles. The experiment proves AI has potential in retail, but for now, human oversight remains essential. The future of AI in business is bright, but as Project Vend shows, it’s also going to be weird.
(Source: VentureBeat)
