This tech CEO says he will fire employees if they don’t use AI

Job cuts

Most companies are still figuring out how to use AI at work. But at IgniteTech, a Texas-based software firm, the boss made it simple: use AI or leave.

CEO Eric Vaughan told Fortune that in early 2023, he decided the future of his company depended on adopting AI. When many employees resisted, he replaced nearly 80% of the staff within a year.

“It was not easy, but teaching new skills was easier than changing old mindsets,” Vaughan said.

He introduced something called “AI Mondays.” On these days, no one was allowed to do regular work like customer calls or budgets. Everyone—from sales to marketing to tech—had to work only on AI projects. The company also paid for AI courses, tools, and training to push employees to learn faster.

But many still didn’t want to. Surprisingly, Vaughan said the strongest resistance came from technical staff, who were doubtful about what AI could actually do.

This is a common story. A new report by enterprise AI platform Writer found that one in three workers have tried to block or avoid AI in their companies. Some refused to use the tools, while others produced poor results on purpose. Many employees said they worried AI might take their jobs.

At IgniteTech, Vaughan decided he couldn’t wait. The company hired fresh talent called “AI innovation specialists” and even reorganized so that every department reported to an AI team.

The gamble worked. By the end of 2024, IgniteTech had launched new AI products, bought another company, and stayed profitable. Vaughan says products that once took months now get built in just days.

Not everyone agrees with this tough-love strategy. Companies like Ikea have chosen to reskill their staff instead of replacing them. Experts argue that helping people adapt is more sustainable.

But Vaughan has no regrets. His view is simple: “Every company faces an AI threat. The only way to survive is to go all in.”