As others have said, use this opportunity to learn about what works w/ AI based on all the crap that doesn’t. Your C-level execs have given you carte blanche to fuck around, without worrying too much about the immediate-term consequences. If they literally said to delete existing test files & generate new ones using AI, do it! And when shit inevitably goes sideways, you’ll be able to spend more of your salaried time rewriting those tests to probably look & work more like the original tests that you deleted.
And while you’re learning to use AI, you’ll be burning the company’s funny-money on AI usage fees. At some point, they’re gonna realize they don’t have a lot to show for all the money that was thrown away in service of doing what they told employees to do. At which point, they’ll take a more measured & pragmatic approach towards using AI. Do everyone a favor & help them get to that point sooner than later.