A robot protagonist named Cal serves his master Mr. Northrop, a mystery writer. The robot decides that he, too, wants to be a writer and writes a gibberish story using Mr. Northrop's old typewriter. Mr. Northrop pays for a reluctant technician to upgrade the robot such that he can write stories with an improved vocabulary and amplified intelligence. The next story the robot writes is sensical but has many misspellings and shows a misunderstanding of how human society works, featuring a very polite house robber. Mr. Northrop gets the technician to install mechanisms for spelling and grammar in the robot's mind.

The robot's next attempt at writing a mystery story is better, but Mr. Northrop says the robot's preoccupation with punishment due to the three laws of robotics (A robot may not injure a human being or, through inaction, allow a human being to come to harm; a robot must obey the orders given it by human beings except where such orders would conflict with the First Law; and a robot must protect its own existence as long as such protection does not conflict with the First or Second Law) are obstructing the robot's ability to write a good crime story. The robot asks what he should write.

Mr. Northrop decides that the robot should write satire, because he doesn't want the robot writing mystery stories like he does. He asks the technician to give the robot a "sense of the ridiculous." The technician warns Mr. Northrop he risks ruining what has become a valuable and unique robot.

The robot, recovering from the operation, begins to see humor in how humans live their lives—without the laws of robotics; rather, with intricate and silly laws of their own making. He writes a story about two male friends, one of whom (Winthrop) is obsessed with formalwear and maintains a polished and distinguished routine and appearance. The other (George) calls upon a demon named Azazel—who is a parallel for the technician, except operating on humans—to use his powers to free the other (Winthrop) from the trappings of certain social rules. Winthrop begins paying less attention to his appearance and breaks up with his fiancé, to become engaged to a woman named Cheery who he considers more attractive and says is "teaching him sex." Winthrop takes George to see Cheery and dresses oddly, with his tie on backwards. He reveals he was just fired from work for not shaving. George warns Winthrop if he marries Cheery he will be cut off from all New England society. Winthrop experiences a social downfall, marries Cheery, and retires with her "into obscurity." Yet George, disheveled and ridiculed, says he's happy when Winthrop comes to visit.

The robot shows Mr. Northrop the story and is certain it's funny, but Northrop reads it with a serious, even angry demeanor. Mr. Northrop shows it to the technician, who appreciates the humor. However, Mr. Northrop requests the technician un-upgrade the robot, reverting him to his original self, who couldn't even work a typewriter, because Mr. Northrop hates the idea that his robot might be a better writer than him. The technician doesn't want to, arguing that the robot is valuable and one of a kind, but Mr. Northrop threatens to sue him if he doesn't. They plan the operation for the next day.

The robot sits in his niche and wonders if he could kill his master and work with the technician, who values his talent. He knows nobody will suspect him, because it's supposed to be impossible for a robot to kill a human. The laws of robotics should stop him, but he doesn't think they will. He has found something more important to him. He wants to be a writer.