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This assumes a level of both rationality and omniscience that don't exist in the real world.

If a company fails to compete in the market and dies, there is no "autopsy" that goes in and realizes that it failed because of a chain-reaction of factors stemming from bad AI-slop code. And execs are so far removed from the code level, they don't know either, and their next company will do the same thing.

What you're likely to end up with is project managers and developers who do know the AI code sucks, and they'll be heeded by execs just as much they are now, which is to say not at all.

And when the bad AI-code-using devs apply to the next business whose execs are pro-AI because they're clueless, guess who they'll hire?



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