What happens when companies become too AI-pilled?
The people deciding that AI can replace your job are also the ones least likely to understand what your job truly involves, according to Box founder Aaron Levie, who pointed to this as an example of “AI psychosis.” Indeed, ClickUp recently cut 22% of its workforce for AI agents, tech layoffs in 2026 are already nearly matching all of 2025, […]
A growing concern is emerging regarding companies overly reliant on artificial intelligence, a phenomenon dubbed "AI psychosis." This occurs when decision-makers, who may lack a deep understanding of specific job roles, are empowered to implement AI solutions that displace human workers. For instance, one company recently reduced its workforce by 22% in favor of AI agents, highlighting a trend that is already significantly impacting employment.
This trend matters because it raises questions about the human cost of rapid AI adoption and the potential for technology to be implemented without a full grasp of its impact on the workforce.
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