Many executives have recently used AI as an easy reason to lay off employees as the economy has deteriorated. Paradoxically, an increasing number of CEOs are leveraging the technology against themselves, using AI as a reason to get out while the getting is good.
CNBC recently reported on the retirements of Coca-Cola CEO James Quincey and Walmart CEO Doug McMillon. In interviews with the site, both multi-millionaires mentioned AI as a reason for leaving their positions, claiming that they are not qualified to manage the upcoming AI revolution.
For instance, Quincey told CNBC that “waves of organizational momentum” drove his resignation. The British-born businessman began working for Coke in 1996 and rose to the position of chief executive in 2017. In his day, Quincey handled many layoffs and odd changes in the market, but he maintains that the AI wave is an entirely new beast.
“It is also my responsibility to determine which team is best to field in order to complete the next wave. He added, “I came to the conclusion that it was actually time to put someone else on the field for the next wave of growth.” We achieved significant strides in a pre-AI, pre-gen-AI era. However, a significant new change is now taking place.
(Something that was left out was Coke’s experimentation with AI-generated advertisements while Quincey was in charge; it was an eerie spectacle that received a lot of ridicule and revulsion but very little appreciation.)
Meanwhile, McMillon had been Walmart’s CEO since 2014. He maintains that he resigned so that someone “faster” could take over.
The former CEO told, “With what’s happening with AI, I could start this next big set of transformations with AI, but I couldn’t finish.” He claimed that a year ago, he began to consider how “AI shopping” would revolutionize the retail sector. McMillon stated, “I began to consider all that would need to happen over the next few years, and it really made me think that now was the right time [to retire].”
It remains to be seen how this story holds up. Walmart will soon have to deal with both inflation and trade taxes, while Coke’s recent revenue growth has let investors down. Given the lack of AI-driven growth and the availability of golden parachutes, it’s possible that the tech is using cover to make timely escapes.
Other CEOs, such as 62-year-old Adobe chief Shantanu Narayen, have been forced off the plane by investors who want better performance in the AI era.
In other words, it’s debatable whether each company’s problems are the result of irascible CEOs or more general economic unrest. In any case, it’s obvious that the old guard isn’t waiting to learn.
