Bosses Are Becoming Obsessed With AI, Using It to Make Every Decision, Barraging Their Employees With Nonsensical ChatGPT Directives, and Even Asking It Who to Fire
Overreliance on generative AI for critical business decisions, from hiring and firing to strategic pivots, is creating operational chaos and governance risks at some companies, raising questions about how institutional investors should evaluate AI adoption practices in their portfolios. The pattern reveals a gap between AI capability and appropriate use cases, with real consequences for employee retention, decision quality, and corporate stability.
- Legal tech startup founder used ChatGPT to generate emails, make hiring/firing decisions, and mandate AI consultation before all employee communications.
- Boss created “The Bible”, a multi-hundred-page handbook designed to route all employee questions to ChatGPT rather than human managers.
- Company strategy shifted erratically based on AI outputs, including pivoting from medical malpractice to bankruptcy focus within weeks based on chatbot recommendations.
- 3 ChatGPT Pro subscriptions purchased for office surveillance and shared employee access.
- 3 different job titles and role changes for single employee within months of AI-driven decision-making.
- Hundreds of pages in constantly-revised handbook designed to eliminate human management interaction.
As generative AI adoption accelerates across corporate America, institutional investors are beginning to encounter a counterintuitive risk: executives using AI tools not as assistants but as primary decision-makers, with minimal human oversight or skepticism.
A legal technology startup founder exemplifies this trend to its extreme, implementing mandatory ChatGPT consultation for all employees, using the bot to determine personnel moves, and eventually replacing human management entirely with an AI-generated employee handbook.
The pattern underscores a critical governance blindspot: the absence of guardrails around AI deployment in functions where human judgment, accountability, and context remain irreplaceable.
Founder Weaponizes ChatGPT as Sole Source of Corporate Authority
The legal tech startup’s founder began with conventional enthusiasm for OpenAI’s ChatGPT, using it to draft routine communications before escalating to something far more consequential. He mandated that all employees discuss ideas with the chatbot prior to internal meetings or direct communication with him, framing AI consultation as a proxy for employee diligence.
“If we didn’t develop and discuss our ideas with the AI first, it was a sign that we didn’t care about our jobs,” according to an attorney who worked there. Within weeks, this had evolved into the bot becoming the de facto executive: the founder made structural company decisions, including hiring and termination recommendations, based entirely on his ChatGPT conversations.
The shift from tool to oracle happened rapidly. Rather than using AI to augment analysis or surface alternative perspectives, the founder treated outputs as authoritative directives requiring no independent validation.
He purchased multiple paid ChatGPT Pro subscriptions for the office, ostensibly to monitor employee AI interactions, effectively centralizing all institutional knowledge in a surveillance architecture.
Employees quickly realized they could access the founder’s own conversations through the shared accounts, leading to an unusual counter-surveillance dynamic where staff monitored the boss’s AI sessions to anticipate organizational changes and personnel decisions.
This model created an accountability vacuum: decisions affecting employment were delegated to a system with no understanding of company context, employee performance history, or long-term strategic trade-offs.
AI-Driven Strategy Pivots Produced Monthly Reorganizations and Role Chaos
The operational impact extended far beyond hiring. Strategy decisions shifted based on whatever topic the founder’s latest ChatGPT session had surfaced. One week, the bot’s analysis of global mortality data led the founder to announce a pivot toward medical malpractice solutions.
Weeks later, following different AI conversations, the company abruptly refocused on bankruptcy services. These weren’t minor emphasis adjustments; they triggered company-wide reorganizations and personnel reassignments.
The whiplash proved especially destabilizing for individual employees. One attorney’s role changed three times during her tenure, oscillating between automation design, legal strategy, team management, and sales, each shift driven by the founder’s weekly ChatGPT prompts rather than business conditions or employee capability.
“My functions and responsibilities within the company kept changing based on the conversations he had with the AI week by week,” she recalled. The absence of continuity prevented skill development, eroded confidence in leadership judgment, and effectively reduced employees to fungible resources being repositioned based on algorithmic suggestion rather than strategic necessity.
No employee could develop expertise or predict their role’s future when organizational structure changed at the pace of the founder’s AI prompts.
The Bible: Replacing Human Management With AI-Generated Policy
The ultimate expression of this framework came with the creation of what the founder called “The Bible”, a constantly-updated, multi-hundred-page handbook designed as an institutional substitute for human judgment. The explicit goal was to eliminate the need for employees to ask questions of human managers or peers.
Instead, staff were expected to feed sections of the document into ChatGPT, asking the system what tasks to perform or problems to solve. This represented not merely consulting AI for input, but attempting to eliminate human management entirely through automated policy generation.
The handbook’s perpetual revision cycle meant employees were always studying an outdated version of truth. As the founder continued feeding it new ChatGPT outputs and insights, the document grew unwieldy while remaining incomplete, a moving target designed to be definitive.
Employees confronted an impossible mandate: treat the handbook with scriptural authority while acknowledging its constant evolution, and resolve work questions through a system that had no way to assess individual circumstances, team dynamics, or real-world constraints.
For institutional investors evaluating companies in their portfolios, this case illustrates a critical governance risk that traditional frameworks have not yet incorporated: the delegation of high-stakes decisions to AI systems without commensurate human review, accountability structures, or escalation protocols.
Unlike conventional management dysfunction, which typically involves identifiable individuals making poor choices, AI-delegated decision-making obscures responsibility and creates the appearance of objectivity where none exists.
Audit committees and boards need to assess not just whether companies are using AI, but whether they are using it appropriately across functions that require human judgment, context, and accountability.
The startup’s current operational status remains unclear, along with whether the founder has moderated this approach, stepped aside, or continues to operate under the same framework. Institutional investors should monitor whether similar patterns are emerging at portfolio companies through HR exit interviews, employee turnover metrics, and strategic pivot frequency, early indicators of AI-first decision-making untethered from human governance.
Original reporting: futurism.com