'AI doesn't strike or ask for pay raise': Why CEOs are replacing workers

By Nguyen Hai Long July 31, 2025 | 11:52 pm PT

Elijah Clark, an advisor on AI implementation, says company leaders are drawn to artificial intelligence because it operates efficiently, doesn't strike, and doesn't request pay raises.

In an interview with Gizmodo, Clark said: "CEOs are extremely excited about the opportunities that AI brings. As a CEO myself, I can tell you, I'm extremely excited about it... AI doesn't go on strike. It doesn't ask for a pay raise."

Clark, along with several other executives, have been outspoken about plans to replace their workforce with AI.

Although not all leaders are as transparent, many acknowledge that AI could significantly impact employment. CEOs Sam Altman of OpenAI and Dario Amodei of Anthropic have publicly stated that their technologies could displace millions of jobs.

Despite the predictions, the current capabilities of AI is a much debated topic. Issues such as false information or autonomous operation are common, U.S. newspaper Futurism finds. Nonetheless, AI may still automate enough tasks to justify workforce reductions.

Elijah Clark, CEO and AI consultant. Photo by LinkedIn/ Elijah Clark

This strategy may backfire on companies adopting AI, but for Clark, the priority is clear: efficiency and profitability.

He once dismissed 27 out of 30 student workers on his sales support team, and the remaining few now complete in under an hour what used to take the full team a week, he claims.

But some companies have faced issues with this approach. According to Futurism, Klarna, a Swedish buy-now-pay-later firm, replaced much of its customer service team with AI tools after partnering with OpenAI.

While initially praising the change, CEO Sebastian Siemiatkowski had to reassess after customer dissatisfaction grew. The company’s losses doubled in the first quarter of this year amid the transition.

Reversing such transitions may also be difficult once the workforce is cut. Klarna had already let go of roughly 40% of its employees.

Peter Miscovich, executive management consultant at JLL Global Future of Work, reports that 20% of Fortune 500 firms will have smaller workforces in 2025 than in 2015.

Clark told Gizmodo that companies are not waiting to act: "I am hired by CEOs to figure out how to use AI to cut jobs. Not in ten years. Right now."