Comment by amsilprotag

A CEO has the power to do anything, but employees have the power to collectively, quietly sandbag if they don't like the leadership. I think the AI effort led to a broad disillusionment, causing an unwillingness to put extra effort into their work. Across the company, everyone starts to take the path of least resistance. The CEO senses his influence waning and becomes more accommodating to avoid further morale death spiral. So situations can arise where a CEO would like a cleaner product (no one likes to ship garbage), but has lost the political capital to make it happen.