That's half of it. The other half is that these execs think that everybody under them is some kind of replaceable cog in the machine with no special skills. They don't think their job could be replaced by AI. But, they think everyone under them is so unimportant that their job can be done by AI. They're managers. They don't know how to do the work of the people they're managing. They can't tell the difference between an accurate result given to them by someone with knowledge and expertise vs. one created by a slop machine that generates plausibly realistic text.

If their $1000/hour lawyers tell them one thing, but the bullshit machine tells them something different, they trust whichever one gives them the answer they prefer.