Your CEO is suffering from AI psychosis (handyai.substack.com)

A rising trend among tech executives is being dubbed "AI psychosis," as leaders become obsessed with using AI tools to drive productivity, often with little measurable output. This phenomenon was highlighted by industry figures like Y Combinator CEO Garry Tan and AI expert Andrej Karpathy, both of whom described sleeplessness and compulsive AI usage as indicative of current cultural dynamics. Despite engaging with sophisticated AI systems and boasting thousands of lines of code produced, the reality is that many AI initiatives fail to deliver significant results, with studies indicating minimal productivity gains across firms. The implications for the AI/ML community are profound. As companies invest heavily in AI infrastructure, the focus seems to have shifted from tangible outcomes to a culture of consumption—what's being termed “tokenmaxxing.” Leadership is increasingly enamored with the aesthetics of AI orchestration while neglecting fundamental project management principles. This not only risks posturing over actual performance but also exacerbates a misalignment between effort and genuine productivity, as evidenced by research showing that AI users often overestimate their effectiveness. The need for clear accountability, objective measurement of outputs, and critical engagement with AI tools is more crucial than ever to ensure that technological enthusiasm translates into meaningful business results.