Coinbase CEO Enforces AI Adoption, Dismisses Noncompliant Staff

Nearly three years after the release of OpenAI's ChatGPT, artificial intelligence has not significantly disrupted the job market. While AI provides a convenient excuse for executives seeking to downsize or outsource, its various issues make it unsuitable for automating human jobs. Notably, 95% of businesses attempting an AI overhaul fail.

Despite these challenges, investors seem unfazed. The mere mention of an 'AI strategy' in a company's earnings report can boost its stock. This may explain why cryptocurrency exchange Coinbase dismissed employees who did not embrace its AI initiative.

Fortune reported that Coinbase's billionaire CEO, Brian Armstrong, initiated a company-wide purge. Coinbase, the largest crypto platform in the US by trading volume, secured deals for AI coding assistants Anysphere Cursor and GitHub Copilot. Armstrong admitted on the 'Cheeky Pint' podcast that he gave engineers one week to adapt to AI.

Armstrong emphasized the importance of AI, urging employees to learn and adapt. He scheduled a meeting on Saturday for those who hadn't complied, stating he wanted to understand their reasons. Those without valid excuses were dismissed.

GitHub praised Coinbase as a company where employees contribute to core products without compromising security. With Coinbase's net revenue at $1.5 billion, the expenses for AI tools are minimal. Armstrong's actions appear ideologically driven.

Armstrong is not alone in enforcing AI adoption. Recently, Eric Vaughan, CEO of IgniteTech, dismissed 80% of his staff for lacking enthusiasm for AI. Resistance primarily came from programmers and software engineers.