Tech Leaders Warn of 'AI Psychosis' as Companies Over-Rely on Automation

Box founder Aaron Levie warned about 'AI psychosis,' where companies assume AI can replace jobs without understanding the work involved. ClickUp recently laid off 22% of its staff to implement AI agents, part of a growing trend in 2026. Tech layoffs are already nearly matching the total from 2025, raising concerns about the rush to automate.

This matters because AI can't replicate human judgment, creativity, or empathy in many roles. While AI excels at repetitive tasks, it struggles with complex, nuanced work. Over-reliance on AI could lead to inefficiencies, lower morale, and even customer dissatisfaction as human oversight diminishes.

If you're concerned about AI's impact on your job, start by assessing which tasks in your role are truly repetitive and could be automated. Focus on developing skills that AI can't easily replicate, like critical thinking and emotional intelligence.