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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CEOs warn workers: evolve with AI or risk your job

Fortune AI16h ago3 min read

Key takeaway

Top executives across tech and finance are warning that AI is reshaping the workplace, creating a stark divide between workers who master AI tools and those who don't. Nearly 40% of business leaders have already cut staff citing AI adoption, while others like Palo Alto Networks' CEO are quietly rebuilding teams by hiring only workers with proven AI skills. The message is clear: workers who don't learn to use AI risk losing their jobs—not to the AI itself, but to colleagues who do.

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3 Key Points

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.
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.
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.

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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