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CEOs Who Think AI Replaces Their Employees Are Just Bad CEOs

https://www.techdirt.com/2026/06/09/ceos-who-think-ai-replaces-their-employees-are-just-bad-ceos/
Reminds me of the old joke "90% of the code is 90% of the work. The last 10% of the code is the other 90% of the work."

I have spent almost my entire adult life (since 1986) shipping products. One of the very first things that I learned, was that "shipping" > "designing".

There's so much work in delivering products that will carry your brand, and then must be supported.

I liken it to having children. Conceiving them is fun. Delivering them is painful. Raising them, is a lifetime of work.

In my experience, the same type of thing applies to products that we ship (and charge money for).

> There's so much work in delivering products that will carry your brand, and then must be supported.

People think otherwise with AI partly because Anthropic kept telling us that they didn't have to write code or review code any more for most of their work. Their agent swarms just comb through their github, slack and wikis to figure out what to do next, and another swarm of agents just review, test, merge, deploy, A/B test, and revert the code. Boris alone merged nearly 300 PRs in the past week (or two?). So the top research labs seem have broken the productivity seal.

And then they talk about this recursively self-improving AI that is so powerful, so autonomous that they advocate that every company should be prepared to "pause" the effort. And their Fable/Mythos has this specific restriction as mentioned in their model card[1] that they are going to reject requests to tune and train models because, well you guess it, the models are too powerful to be used by mere mortals.

[1] We’ve implemented new interventions that limit Claude’s effectiveness for requests targeting frontier LLM development (for example, on building pretraining pipelines, distributed training infrastructure, or ML accelerator design). Using Claude to develop competing models already violates our Terms of Service, but enforcing this restriction through our safeguards avoids accelerating the actors most willing to violate these terms. Unlike our interventions for cybersecurity, biology and chemistry, and distillation attempts, these safeguards will not be visible to the user. Fable 5 will not fall back to a different model. Instead, the safeguards will limit effectiveness through methods such as prompt modification, steering vectors, or parameter-efficient fine-tuning (PEFT).

Fully agree. Shipping a complete product with a functioning user acquisition funnel is much harder. It's like; you have to build the whole product first with lots of features and then you have to try to create a highly condensed overview of all those features to expose them all on the landing page.

If you can't make the visitor understand your entire complex product in 10 seconds, then you've lost them.

Your product has to be complex because that's where the software market is at. All of the low-hanging fruits have been taken by the time you identify them. Sure, someone will find a way to make money using new low-hanging fruits that arise due to technological changes but it's not going to be you. You probably don't have the business connections to make that work.

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> 90% of the code is 90% of the work. The last 10% of the code is the other 90% of the work.

Don't think I've heard that one but certainly rings true to my experience.

Reminds me of "ninety percent of the game is half mental"

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I like this analogy; raising children well like delivering products well pays dividends. They’re less likely to cause problems and if they do, they tend to be smaller in scope.
I skimmed the article, guilty, but I think what I got from it is that CEOs will CEO? No disrespect meant, I’ve seen your name here often and thoroughly enjoy the folklore that you share, but I don’t understand what context you reacted to. Cheers.
The context that they think that shipping is simple. Shipping (what you need all those annoying peons for) is really terribly difficult, and has a lot of moving parts that designers often fail to take into account, until the deployment people lock them into a restroom stall, and refuse to let them out, unless they listen.

That's common with newer engineers (and now, non-engineers). I believe that Mr. Dunning, and Mr. Kruger had something to say about it.

I also spent most of my career at hardware-oriented companies, and shipping hardware is orders of magnitude more difficult than shipping software.

> Conceiving them is fun. Delivering them is painful. Raising them, is a lifetime of work.

Then there's the technical debt!

Shipping is frankly the easy part. It's the operating overhead that often breaks you.

I liken it to free puppies.

This is true.

I have always prided myself on writing concise, high-Quality code, because it tends to be quite debt-free.

So far, LLMs seem to deliver code with "Louie Da Loan Shark"-levels of tech debt.

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You can actually get high-quality code out of them -- at least with Claude; not had a great experience with Gemini -- but for complex tasks requires riding them very, very hard and really understanding where things can go wrong and poking at them repeatedly. Iterate, iterate, iterate.
> Iterate, iterate, iterate.

That describes my last week. What made it most annoying, was the need to release through TestFlight, because the memory issues would not appear, when tethered. Also, I was checking in constantly, because I had to revert and reset the context, several times.

Every line of code is a liability
Yup. In another post, I was grumping about having to accept a truly obese bunch of code from an LLM. This particular issue is the only one I could imagine even considering accepting that much pasta, but I sort of have to, because the LLM was able to quickly solve a problem that would have taken me a couple more weeks to address.

I remember a .sig that went something along the lines of:

    I hate code, and want as little as possible in my software.
now it's closer to 95% of work can be done by AI and requires 5% mental effort, but 5% of the work requires 95% of the mental effort to finish because of all the unoptimial decisions AI has taken. I find that AI works best in small micro-service type architecture where each component has a clear goal and doesn't have interconnected parts within the same application that can break. But you do run into an issue where changes in microservice a need changes in microservice b and updating it is not ideal since it usually cascades thru the entire system or requires stacks of legacy support.
IME it’s possible to have good clear APIs, limited scopes/goals, etc in a normal (macro?) service. But it requires a level of discipline and process many teams are unwilling to engage in.
There are a lot of bad CEOs, though. It's a lot like a politician -- it's quite difficult to become a CEO, and the skills to make it to that position don't always intersect nicely with the skills necessary to actually do the job well.
CEOs do get there with lots of politics in almost all cases. It’s all about who’s ass you kiss and who’s ass you don’t and if you’re lucky with timing things might just fall into place.

I think it’s exceedingly rare that a CEO is actually competent at their job. In most cases it’s the labor class propping the company up, and in some cases the workers are doing so against the wishes of the CEO. Not that executives want to ruin the company, they’re just incompetent and therefore make terrible decisions constantly.

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> it's quite difficult to become a CEO

on the contrary, it seems to be one of the few jobs that seems to require absolutely no qualifications to have.

What you need to do to be CEO is.... convince someone to lend you money in the hope that you'll get it back to them.

I've worked under some absolutely awful people who wouldn't pass an interview anywhere, but somehow they're CEOs, because they can smarm there way into more money consistently.

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It's not difficult at all to become one, and the work involved in being a CEO is not particularly difficult in comparison to senior technical work at all. The only thing that is harder about being a CEO is the responsibility. I'm sure being the CEO of Microsoft or whatever is plenty difficult and demanding in many ways, but most CEOs are not that, and speaking just from experience most CEOs and CTOs are clueless morons.

With that said, I've been programming for 25 years and I've only been a CEO for 3, so take what I said with a pinch of salt.

I do think people overestimate titles like this a lot, though, and it really comes down to what the company actually does and what is demanding for that company at that position/role. The CTO of a some-bullshit-as-a-service company may as well be straight out of college, because they're likely doing something trivial that literally anyone (including LLMs) could put together. The CTO of a well-used and reliable streaming service that handles a meaningful part of the world's Internet traffic is obviously solving a more interesting and demanding problem, and their decisions are going to be more important.

what about zukerberg he didnt have to do any politics to get to ceo. yet he is the face of ai layoffs and bad ceo.
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A custom-built AI would be pretty good at replacing a CEO. Think of all the things a company could do if they reduced overhead by that much?
You don't need custom built anything, ChatGPT could generate corporate initiatives and PR statements all day and no one would notice.
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You can get a lot of tokens for a CEO. I'd say it's worth a try.
I am building a project now and then will create an AI to manage it and be the CEO.

The code is human + AI, the management is only AI

Who takes responsibility when the AI does something unethical or illegal? Do we put the computer in jail? Or do we just look the other way like we do with human CEOs?
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AI means mediocre. Mediocre companies are pretty bad to work in. So it would guarantee a soulless and pointless company imo
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Robotics aren't there yet, it needs to go on golf playdates with investors and board members.
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While I agree that AIs would do a good job…

Would you rather take instructions from a ruthless robot or ruthless flesh sack?

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CEOs understands that AI offers potential productivity increases. Using that productivity boost to cut staff is an unimaginative approach. Bolder approaches include using that boost to exceed the expectations of current customers, or to increase sales without proportional increase in staff, etc.
There are a LOT of bad CEOs.

There are also a LOT of bad software developers.

When they meet, the software developer is fired.

The CEO exits after a while, after exercising their stock options...

Why can't we get AI models that replace these CEOs? I bet they're pretty good at running a company.
What about employees who think AI replaces their CEO
Upper management material written all over them.
Maybe the CEOs who think AI replaces their employees should be replaced by AI?
If AI makes you more capable, it’s basically like having a capital injection.

CEOs that look at that and think they need to reduce headcount seem to also be signaling they don’t know what to do with increased resources

>> Yes, the tools are powerful, but a CEO who thinks they replace the work of employees is simply a bad CEO.

This is a broad generalization of employees. There will be some "routine tasks" that can be done by AI, now that is a lot more powerful.

There won't be as many employees needed for routine work - for example L1 and L2 support work. For example, many companies had ML engineers building models for various models. Companies can get that off the shelf from AI companies. They don't need a big team of model builders now.

If L2 support work is the example then I doubt we’re near replacement.

L2 issues are already involved in some way often revealing some kind of system failure, requiring context and exploration to understand, and judgement (and perhaps even system overrides) to fix.

I could see “automated L2 is the new L1” improvements, but without a big capability jump and/or a resource bonfire, I don’t think even frontier models would effectively replace good L2 staff.

They might magnify good L2 staff so fewer are needed (and maybe even help L1 staff become L2).

I often use AI chatbot to generate step-by-step instruction for setting or repairing up some bit of tech. It's incredibly empowering, and saved me a a lot of money that would have been spent on buying replacement tech.

You know who can't do that? People who call L1 support.

Wow the token leaderboard idea is nuts. It's similar to trying to measure the productivity of software engineers based on number of lines of code.
The message isn't subtle, and isn't meant to be: "we don't care how, but we expect you to stick your nose into AI tools and find some way to fit them into your workflow".

Which indicates: the management believes there are productivity gains from AI use, but adoption lags due to inertia and reluctance to change existing workflows.

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I think sooner rather than later, AI will replace CEOs.
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Wait, tech CEOs don’t understand why employees are valuable?

Astronaut holding up gun to other astronaut

Always have been.

It’s hilarious to me that when you stop investing in juniors and seniors who use your AIs retire, what are they going to do then?
You bring in contractors.

Ideally contractors that benefit you personally (eg: your buddy who now owes you one), but definitely contractors that let you outsource the responsibility.

Even better if you get some management consultant to suggest the idea and/or do the subcontracting.

Definitely buys you a few quarters of bonus and some time to land your next gig.

Who wants to be CEO for that long? The company will be sold off to a larger conglomerate long before that happens.
Get your state governor to go on tv and ask for people who know how to program Cobalt.
The CEOs that think AI replaces their employees are the same that at the same time don't want to pay the AI costs.
CEOs are probably the most replaceable position, period, by human or AI. Everyone just gives them information. They don't know any information themselves.

Problem is, a CEO can fire employees, find out it was a dumb decision, then leave with a million dollar severance package. So they don't really care when they're wrong.

A story from today - I needed a small utility to remap my logitech buttons under windows without installing their horrendous GHUB. Logitech Onboard Memory Manager still required ghub to be put into onboard mode.

The solution - linux has utility called piper. I downloaded the repo and just told codex - figure out what piper is doing and create me a small utility to do it under windows. So the jolly critter started experimenting with hex commands, then pulled some other repo on which piper depended figured out how to enable said onboard mode and 10-sh minutes later I had small python script that did what i needed to do.

That would have taken probably half a day of work for a human.

There are many stupid CEO and organizations which are not committed to quality. And a lot of employees that are too set in their ways. But the instinct that underinvesting in AI is more dangerous than overinvesting is right. Doomed if you do, doomed if you don't

"To err is human, but to really foul things up requires a computer" - this is from the 60, but right now is turned into overdrive.

It's our fault for stupidly naming everything AI:

A* search -> AI

Backtracking -> AI

Neural Networks -> AI

Fuzzy Logic -> AI

Genetic Algorithm -> AI

Deep Learning -> AI

Generative "AI" -> AI

Similar to Tesla naming it's driver assistant "auto-pilot" in 2015 and your average Joe thought he would be able to sleep while the car would drive him to work.

The CEO just hear AI and think of AGI. They expect Skynet.

Aircraft autopilot is over 100 years old, and Testla autopilot is an automotive version that fits the definition by analogy to what aircaft autopilot does and what the human metaphor means (doing simple tasks aithout higher-level cognition or handling of surprising stimuli). Autopilot is not end-to-end driverless.
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This is a great article, and I agree with most of it.

The problem is that the wrong eyes are seeing it.

We need these kinds of articles to be published in places that executives read, and tailored to their audience.

AI recovery is going to be a big wave of consulting over the next several years, maybe very publicly or maybe quietly, but it's going to be a thing. That doesn't mean "all AI is bad" or any other such nonsense, it means that there are a lot of companies out there right now that are doing it wrong and will need help.

The executives that get ahead of this are going to be the winners.

The primary product of AI is labor displacement and consequently wage supression. This is what OpenAI and Anthropic are really selling. It didn't start with AI but AI is accelerating it.

This is what layoffs have been about since the pandemic. People in fear of losing their jobs do extra unpaid work and aren't asking for raises. The theoretical potential of AI gives companies the excuse to fire more people. The investment itself is directly used as a reason of why they need to cut back on labor.

Any sufficiently sized business can only feed the insatiable hunger for ever-increasing profits ultimately by cutting costs and raising prices. And what do we have now? High inflation and a decline in real wages. CEOs are just following this playbook.

And the result is that society is bouldering towards collapse. We're seeing the first hints of this with the youth unemployment crisis [1][2][3].

Also, who is going to buy anything when nobody has any money?

[1]: https://www.americanprogress.org/article/americas-10-million...

[2]: https://www.brookings.edu/articles/twelve-ways-to-fix-the-yo...

[3]: https://www.bbc.com/news/articles/cy026x9jpd0o

> Also, who is going to buy anything when nobody has any money?

This assumes that a mass consumer economy is necessary, when it isn't. Mass consumption is relatively new, for most of history economies functioned with just a small consuming elite and large underclass that consumed very little. We are already approaching that again in the states given that the top 10% of earners are already responsible for nearly half of all consumer spending.

There's a floor even in a mostly automated economy where some services are resistant to automation simply because the human element is the product. Luxury hospitality, personal care, etc. That billionaire is going to want a human masseuse, not a robot.

A highly automated economy could stabilize like this with a small elite population consuming luxury goods & services, served by a low-wage economic underclass human workforce.

Its certainly not a pleasant society, but its also not unsustainable given enough oppression or pacification (bread and circuses anyone?)

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Previously:

Tech CEOs are apparently suffering from AI psychosis

https://news.ycombinator.com/item?id=48295679

I believe there are entire companies right now under AI psychosis

https://news.ycombinator.com/item?id=48153379

CEOs who think that excavators replace their hand-diggers are just bad CEOs
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So much of this hype feels like astroturf in preparation for the upcoming IPOs:

https://tomtunguz.com/spacex-openai-anthropic-ipo-2026/

and I don't know what worries me more - a burst in this bubble (and maybe some other tech stocks), or a failure of these valuations to be burst somehow, and even more concentration of capital and power around those corporations.

Most CEOs are not special. They are not especially smart, or skilled, or technical. The role self selects for sociopathy. That's not a quality that has any kind of linear relationship with intelligence. Quite the contrary.
A common misconception about AI is that it is intended to fully replace humans, which is incorrect. The purpose of AI is to reduce the need for human labor, and it has already been doing so. For example—though this is not an exact figure—a task that previously required 15 people might now only need 10. In no instance has the human element been completely replaced; rather, the reliance on manual labor has simply been reduced.
It's not exactly a misconception, when companies are pitching AI as a full and complete replacement for human employees. People are just reading the billboards on the side of the road.
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> though this is not an exact figure

You mean, this is an entirely made-up figure.

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That sounds like 5 humans got replaced by AI. I don't think most people worry about whether all humans will be replaced, simply whether or not they will be replaced, or people they care about.
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