‘Fired them all, will do again’: Tech CEO replaced 80% of employees with AI, says humans not ready to embrace technology

As companies around the world rush to integrate artificial intelligence into daily operations, one CEO has shared an example of how difficult that transition can become. Eric Vaughan, chief executive of software company IgniteTech, says the firm replaced nearly 80 per cent of its workforce after many employees refused to adopt AI tools despite extensive training and company-funded support.

The comments, first reported by Fortune, have attracted attention because they illustrate a growing challenge facing businesses: technology can be introduced quickly, but changing workplace habits may take much longer. According to Vaughan, resistance to AI became one of the biggest obstacles in the company's transformation into what he describes as an AI-first organisation.

The company spent heavily on AI training

Vaughan said IgniteTech invested significant resources into helping employees learn how to use artificial intelligence. The company introduced weekly "AI Mondays", where workers focused exclusively on AI-related projects. Employees were also offered reimbursements for AI tools, prompt-engineering courses and external training programmes. The company even brought in outside experts to support staff. According to Vaughan, IgniteTech dedicated around 20 per cent of its payroll towards AI learning efforts for one day each week over an entire quarter. Despite that investment, some employees remained unwilling to embrace the technology. "We took 20 per cent of our entire payroll for one day a week for an entire quarter to get people to learn AI and still found people that said, 'I'm not going to do it,'" Vaughan said.

Why the company replaced so many employees

The transition began in early 2023 after Vaughan became convinced that generative AI represented a major shift for businesses. He viewed AI as a technology that companies would eventually need to adopt to remain competitive. As a result, IgniteTech pushed aggressively towards integrating AI into products, workflows and employee responsibilities. However, Vaughan said some workers rejected the direction entirely. Between 2023 and early 2024, the company replaced nearly 80 per cent of its workforce, affecting hundreds of employees. "That was not our goal," Vaughan said. "But changing minds was harder than adding skills."

A wider debate over AI in the workplace

The comments arrive at a time when artificial intelligence is transforming industries ranging from software development and customer support to finance and healthcare. Many employers are encouraging workers to use AI tools to improve productivity and automate repetitive tasks. At the same time, concerns remain about job security, changing workplace expectations and the speed of technological change. IgniteTech's experience highlights a growing question facing employers: how should organisations respond when employees are unwilling to adopt technologies that leadership views as essential?

Vaughan says he would make the same decision again

While defending the outcome, Vaughan described the process as difficult. He said he would make the same decision again but stopped short of recommending that other businesses follow the same approach. According to the CEO, alignment between leadership and employees ultimately mattered more than training programmes alone. "If your team isn't in sync with you, I don't think any amount of training or strategy is going to fix that problem," he said.

What this means for workers and businesses

The story reflects a broader shift taking place across the technology industry. As AI tools become more capable, employers are increasingly expecting workers to understand and use them as part of their roles. For employees, AI skills are rapidly becoming a valuable workplace asset. For businesses, the challenge is not only introducing new technology but also helping teams adapt to it. The debate is likely to continue as artificial intelligence becomes more deeply embedded in everyday work.