Tech CEOs are apparently suffering from AI psychosis (techcrunch.com)

Tech CEOs are experiencing what's being termed "AI psychosis," a phenomenon where they overestimate the capabilities of AI, according to Box founder Aaron Levie. He argues that many executives, distanced from the everyday realities of AI implementation, leap to believe that AI can autonomously handle complex tasks. This disconnect is evident as layoffs in the tech industry surge, with over 115,000 workers dismissed in 2026 alone, often justified by companies citing AI productivity gains. However, research shows little correlation between AI adoption and actual productivity improvements, raising concerns that executives may be misinterpreting the technology's impact. The situation is compounded by CEOs like Zeb Evans from ClickUp, who have rolled out numerous AI agents while significantly cutting their workforce, claiming a transition to a model where humans oversee AI rather than replace them. While AI holds promise, studies suggest it won’t achieve true human-level performance for several years. Without a firm grasp of AI's current limitations, Levie warns that CEOs may inadvertently foster chaos within their organizations, as unchecked AI deployment could lead to bottlenecks and inefficiencies at the executive level. As the tech landscape evolves, a deeper understanding of AI's capabilities and limitations will be crucial for sustainable growth and stability within the industry.