A very personal view but many developers/engineers fail to see the overall picture. And yes, I was there and I went through all of the mistakes.
The things you see on the surface of those incompetent CxOs are just the tiny piece of the bigger picture. You cannot replace blames, decision in the face of uncertainty. Almost all decisions that businesses take have nothing to do with the proficiencies of technologies or engineering finesse, or even the best options, but mostly on “incentives” and who can take/own the “blame.”
“AI” replacing developers is evident because that is a rather tiny perspective and kinda easy to do the equation - developer can do that (good, bad, best) and can the AI do it - maybe, perhaps. So, replace.
A C-Suite took a decision to tick the final approval of a billion dollar deal with a service providers (amongst 10s of them). The idea might have sounded idiotic because there were 3 others better at the top than the chosen one. Even if all of the task and options were weighted with AI, but that last human decision is the Blame that the C-Suite took on, by betting his incentives on it (money, fame, pride, ego.)