'Darwinian moment': Palo Alto Networks CEO warns workers who fail to learn AI risk being left behind

Palo Alto Networks CEO Nikesh Arora says AI fluency will define careers as companies rethink hiring

Artificial intelligence is reshaping hiring decisions across the technology industry, but Palo Alto Networks CEO Nikesh Arora believes the answer is not sweeping layoffs. Instead, he argues that companies should use workforce turnover to gradually build teams with stronger AI capabilities while encouraging existing employees to upskill before the gap becomes too wide.

Speaking on the 20VC podcast, Arora said the vast majority of employees at large organisations are still not comfortable working with AI tools, describing the shortfall as one of the biggest challenges businesses face today. In his view, workers cannot rely on universities or employers to prepare them for an AI-driven economy and must instead take responsibility for learning new skills themselves.

More from Tech

"I think we're back to a Darwinian moment where everybody has to figure out who's really good," Arora said, adding that there are currently no established university programmes capable of preparing professionals for the pace of change brought by generative AI.

AI skills, not layoffs, should drive workforce transformation

Arora's comments come at a time when companies across the technology sector are increasingly linking restructuring decisions to AI adoption. While many executives have framed artificial intelligence as a productivity tool, several businesses have also reduced headcount as they automate routine work and redirect investment towards AI initiatives.

Research from organisational planning platform Orgvue found that 39 per cent of employers had already made redundancies because of AI during 2025, highlighting how automation is beginning to influence hiring and workforce planning.

Against that backdrop, Arora has positioned Palo Alto Networks on a different path. Rather than pursuing large-scale job cuts, he said the company is using natural employee turnover to reshape its workforce over time.

According to Arora, roughly 2 per cent of employees leave Palo Alto Networks each month. Instead of simply filling those positions with similar talent, the company is recruiting candidates with stronger AI capabilities, including through hackathons and other specialised hiring programmes.

That approach, he said, could allow around one-fifth to one-quarter of the workforce to be refreshed within a year, with the longer-term goal of making most employees AI-literate over the next three years.

Arora contrasted this strategy with companies that have significantly reduced staff in response to AI. Referring to executives including Coinbase CEO Brian Armstrong and Block CEO Jack Dorsey, he suggested some leaders have concluded that retraining large sections of their workforce is no longer practical.

"They've figured out there's no redemption. 'I can't train these people, I'm going to just find the people who are going to come in and help me do this stuff,'" Arora said.

Tech leaders increasingly warn workers to adapt to AI

Arora's assessment reflects a broader shift in how technology executives are talking about careers in the AI era. Increasingly, industry leaders are urging employees to treat AI proficiency as a core professional skill rather than an optional addition.

Google CEO Sundar Pichai has previously said that no profession, including his own role as chief executive, should assume immunity from AI-driven disruption. Fiverr CEO Micha Kaufman has also urged workers to actively use AI tools, warning that those who ignore the technology risk falling behind. Nvidia CEO Jensen Huang has similarly argued that employees are more likely to be displaced by colleagues who know how to use AI effectively than by AI itself.

Arora has also spoken about AI's impact on the software industry itself. Earlier this year, he acknowledged that some software businesses could face disruption if their products are easily replicated by AI or if software agents can automate core workflows. However, he argued that the impact will vary across different parts of the industry rather than affecting every software company equally.

Cybersecurity, he suggested, is unlikely to be among the sectors most vulnerable to AI-driven disruption. While automation will inevitably change how security teams operate, Arora believes the complexity of defending digital infrastructure means human expertise will continue to play a central role.

His latest remarks reinforce a message gaining traction across Silicon Valley: as AI becomes embedded in everyday business operations, the biggest divide may no longer be between humans and machines, but between workers who learn to use AI effectively and those who fail to keep pace.