Business-software provider IgniteTech rebuilt its operations around artificial intelligence after Chief Executive Officer Eric Vaughan dismissed roughly 80 percent of employees in 2023 who resisted the shift. The company instituted compulsory “AI Mondays,” reimbursed staff for AI tools and courses and funnelled about one-fifth of its payroll into retraining, according to a recent Fortune interview with Vaughan. The overhaul included hiring a chief AI officer and reorganising all divisions under a centralised AI team. IgniteTech has since launched two AI-enabled products that are awaiting patents, completed the acquisition of customer-engagement platform Khoros in 2024 and reported an EBITDA margin of about 75 percent—up from pre-revamp levels—suggesting the strategy boosted profitability. Vaughan called the layoffs “extremely difficult” but said he would repeat them, arguing that failure to adopt AI poses an existential threat to established software firms. He added that changing employee mind-sets proved harder than adding technical skills, citing internal sabotage and widespread resistance, particularly among engineering staff. The episode has fueled debate over how far companies should go to speed AI adoption. Leaders such as Mindstone’s Joshua Wöhle advocate retraining rather than replacement, while cases like Ikea and Klarna illustrate gradual or hybrid approaches. IgniteTech’s results show aggressive moves can pay off financially, but the high human and cultural costs may limit how broadly the model is copied.