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Fortune AIPublished: Jul 2, 2026, 01:00 JST

CEOs warn workers: evolve with AI or risk your job

CEOs warn workers: evolve with AI or risk your job

3 Key Points

  1. What happened

    Palo Alto Networks CEO Nikesh Arora stated that 90% of employees at big companies aren't AI savvy, and warned of a "Darwinian moment" where workers must learn to use AI or face career risk. An estimated 39% of business leaders have already made employees redundant due to leveraging AI, according to a 2025 Orgvue study. Companies like Coinbase, Block, and Cloudflare have issued sweeping layoffs connected to AI.

  2. Why it matters

    As AI automates routine tasks and redefines roles, adaptability is becoming critical for career survival. Arora is hiring only through hackathons to build an AI-fluent workforce at Palo Alto, replacing departing staff with workers who have proven AI skills. Google CEO Sundar Pichai and Fiverr CEO Micha Kaufman both emphasized that no job—not even the C-suite—is fully protected from AI disruption, and that professionals must learn to use these tools to remain competitive.

  3. What to watch

    Arora expects to transform 20% to 25% of Palo Alto's 21,000-strong workforce within 12 months through hackathon hiring, and aims to have enough AI-savvy people in place within 3 years. He noted that companies cutting 30% to 40% of staff have concluded "there's no redemption"—they are rebuilding from scratch with AI-fluent talent rather than retraining existing workers.

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FAQ
What percentage of workers are not AI savvy, according to Palo Alto's CEO?
Nikesh Arora stated that 90% of employees at big companies aren't AI savvy.
How is Palo Alto Networks planning to rebuild its workforce?
Arora said he is hiring "only through" hackathons to bolster AI skills, letting natural attrition run its course at around 2% of employees leaving each month, then replacing them with workers who have proven their AI competency.
What have other major tech companies done in response to AI?
Brian Armstrong's Coinbase, Jack Dorsey's Block, and Matthew Prince's Cloudflare have all issued sweeping layoffs connected to AI. Arora noted that these leaders have moved to 30% to 40% fewer people, choosing to rebuild with AI-fluent talent rather than retrain existing staff.

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