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Fire that CEO, he's an idiot.
If you have ever been to any major SLT or higher meeting, the phrases "This is the first time I am hearing about that" or "That's not what was reported to me" come up so much that I'm amazed the meetings even finish on time. Plausible deniability of the name of the game.
I said "I sent a video recording of this a month ago and received confirmation. Do you not have that?" and got back "I never got that."
"Alright, got it. Thankfully it's not my problem anymore but you know where yours is." and left it at that.
That's true and this is not an example of such a situation, because he knew exactly what the reaction was going to be. He probably felt that he could ride that AI bubble away from it, but he knew the reaction was waiting for him.
The other thing about that claim, when it could possibly be credible, is it means that essentially the boss is not qualified to do their job. The one thing they should have done is been chatting with ordinary workers or customers to see what the actual needs are, and they're admitting it to somehow deflect from a bad decision they made but in doing so they've unwittingly shown that they're basically incompetent at their entire job.
I think you misunderstood my meaning. They know. They've known all along. They simply think that saying they don't know and throwing everyone below them under the bus is fine because it's accepted in the business culture here. The CEO is always right because even when they aren't, bonus still gets deposited.