The CEO of Uber made the same comment on Diary of a CEO recently. I think it was for their customer service team if I'm not mistaken, they threw their existing docs at an LLM and it was all over the place because policies were poorly documented and defined. The team is now documenting everything from scratch, focusing on outcomes rather than process - TBD if it works out.
Companies really want to use AI because they can cut the workforce. But today's AI is generally not able to fill in the gaps in processes and documentation a human could. Hence the renewed focus on formalizing everything properly because it's the only way it will work.
Yeah, someone made the point in a popular post here recently that all the firings are reducing institutional knowledge. IMHO, replacing that knowledge with LLM-written documentation is even more potentially catastrophic. Just from organizations I've worked in, a lot of the useful human knowledge is in knowing how to handle either undocumented edge cases or situations where the documents are outdated or wrong. Working with LLMs and reminding them to update those docs every time? Good luck. And if it's something where the docs touch actual real world operations, that's an area where only human operators with hands-on experience are going to recognize the potential conflicts or cognitive dissonance.